Student loan relief in the US is designed specifically for long-term borrowers enrolled in income-based repayment plans.
President Joe Biden has given the green light to an additional wave of student loan relief, forgiving $4.9 billion in debt for about 74,000 borrowers. USA Today reported.
This relief is designed specifically for long-term borrowers enrolled in income-driven repayment plans and the Public Service Loan Forgiveness (PSLF) program.
The Department of Education's adjustments to these programs, in part driven by a nonpartisan watchdog report, have paved the way for this targeted relief.
The latest initiative echoes previous relief measures implemented by the president, showing his commitment to more targeted loan forgiveness despite the Supreme Court's rejection of his initial relief plan last summer.
Biden emphasized his resolve, stating, “I will not back down from using every tool at our disposal to give student loan borrowers the relief they need to achieve their dreams.”
The 29,700 borrowers on income-driven repayment plans were granted $1.7 billion in relief through a reassessment of their repayment terms. Those who had been paying off their loans for more than two decades, as determined after the adjustment, automatically qualified for full forgiveness.
The remaining $3.2 billion was allocated to 43,900 borrowers enrolled in the Public Service Loan Forgiveness program, and the federal government reassessed their payments and accelerated their repayment terms.
The Biden administration has been actively reviewing borrower accounts on income-driven repayment plans and reevaluating payments made by PSLF participants since last fall.
This strategic approach aligns with the administration's broader effort to prioritize student loan relief, which could influence political considerations for the upcoming November elections.
