Biden’s Historic Move: 125K Borrowers Get Relief as Student Debt is Wiped Out!

President Biden unveils fresh federal student loan forgiveness program, just as borrowers brace themselves for the resumption of payments after a three-year hiatus brought about by the COVID-19 pandemic. This latest initiative from the president will provide assistance to 125,000 borrowers by eradicating $9 billion in debt through existing relief programs, according to the AP. Since Biden assumed office, a total of 3.6 million borrowers have had their debt wiped out, amounting to $127 billion. “President Biden has long believed that college should be a gateway to the middle class, not a burden on families,” states the White House in a statement.

Biden promised to ease the weight of student debt while campaigning for president, and despite his initial plan being overturned by the Supreme Court, he has been facing pressure to deliver on his promise. Biden has been utilizing various programs to chip away at the debt, such as public service loan forgiveness and the SAVE Plan, which links payments to borrowers’ income, thereby reducing them. The Education Department reveals that approximately 40% of the loans forgiven on this occasion involve borrowers who made payments for 20 years or more under income-driven repayment programs but received no relief due to the system’s failure to keep track of their payments, as reported by the Wall Street Journal.

CBS News reports that another 40% of affected borrowers qualify due to their participation in public service loan forgiveness programs, which are accessible to individuals employed by the government or non-profit organizations and require 120 qualifying monthly payments. The third group of borrowers impacted by this program includes those with total or permanent disabilities.

(Read more student debt stories.)