Biden Forgives $4.9 Billion Student Loans for 73,600 Borrowers

President Joe Biden’s administration approved the cancellation of $4.9 billion for 73,600 borrowers, the White House said Friday, in its latest round of forgiving student loans.

The president has made changes to the U.S. Department of Education’s income-driven repayment plans and the Public Service Loan Forgiveness Program, allowing him to put this forgiveness into effect this week.

Out of the total, $1.7 billion of the aid will go to 29,700 borrowers who are currently enrolled in income-driven repayment plans. Those who have been in repayment for at least 20 years and have earned forgiveness but have not received it had their loans completely forgiven.

While income-driven plans are designed to eventually result in debt forgiveness after a specified period, historical challenges arose as loan servicers failed to accurately monitor borrowers’ payments, the Department of Education said. The Biden administration overhauled the program in 2022.

The other $3.2 billion of forgiveness will go to 44,000 people who have worked in public service for more than a decade. Nearly 30,000 of these people are those who have been trying to repay their loans for at least 20 years but have struggled to get their debt erased owing to issues like errors in their payment counts, the department said.

The Biden administration made changes to the PSLF starting in 2021, allowing many more borrowers to qualify for forgiveness than under the old rules.

The latest round of forgiveness is part of a broader push by Biden to forgive student loan debt. After the Supreme Court ruled against Biden’s student loan forgiveness program last year that aimed to cancel up to $400 billion in student debt, the government introduced the  Saving on a Valuable Education (SAVE) Plan as part of an income-driven repayment plan to waive off education debt.

To date, the Biden administration has forgiven over $136 billion in student debt, benefiting more than 3.7 million Americans.