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The Biden administration announced on Monday that over 150,000 borrowers would receive student loan forgiveness, bringing the total number of individuals benefiting from debt relief during President Joe Biden’s tenure to over 5 million.
The new group of 150,000 borrowers includes 85,000 individuals defrauded by their schools, 61,000 with permanent or total disabilities, and 6,100 public service workers. Secretary of Education Miguel Cardona highlighted the administration's commitment to an affordable and accountable loan system.
“Today’s announcement provides relief for borrowers misled by institutions, those with disabilities, and public servants,” Cardona stated.
In total, the administration has forgiven $183.6 billion in student loans, a record-setting amount. Officials emphasized the positive impact this forgiveness has had on Americans’ lives, especially as federal efforts on student loans may slow down under the next administration.
“Forgiving loans for 5 million borrowers shows the federal government is keeping its promises,” said Under Secretary of Education James Kvaal.
He noted that the relief targets individuals in public service, those with disabilities, defrauded borrowers, and those who have completed decades of payments. Kvaal stressed that permanent reforms would continue to benefit more borrowers annually.
The unprecedented level of debt relief stems from changes to the Borrower Defense and Public Service Loan Forgiveness (PSLF) programs. These updates have made it easier for eligible borrowers to qualify for forgiveness. Under PSLF, over 1 million borrowers have received relief, compared to just 7,000 before the Biden administration.
Cardona reiterated the administration’s dedication to fixing the student loan system. “Four years ago, President Biden promised to address a broken system.
Today, life-changing relief is a reality for over five million borrowers — more than any administration in history,” he said.
Officials did not confirm whether this marks the final round of forgiveness before President Biden’s term concludes. However, the administration’s actions have set a new benchmark for addressing student debt.
