President Biden continues to make significant strides in alleviating the student loan debt crisis, announcing the approval of debt cancellation for an additional 74,000 student loan borrowers. The latest action contributes to the record-breaking relief the administration has provided to more than 3.7 million Americans.
Earlier this month, Biden announced the accelerated implementation of a crucial provision under the Student Aid for Voluntary Education (SAVE) plan, which the administration said has helped 3.6 million Americans by canceling their student debt. Biden said the plan aims to create a more affordable student loan repayment structure while providing life-changing support to students and their families.
“Today, my administration approved debt cancellation for another 74,000 student loan borrowers across the country, bringing the total number of people who have had their debt canceled under my administration to over 3.7 million Americans through various actions,” Biden said in a statement on Jan. 19.
The beneficiaries of the latest round of relief include nearly 44,000 teachers, nurses, firefighters, and other public service professionals who have earned forgiveness after a decade of dedicated service. Additionally, close to 30,000 individuals who have been in repayment for at least 20 years without receiving relief through income-driven repayment plans will now see their debts forgiven.
Biden credited the success of these relief efforts to the corrective measures taken to address broken student loan programs. He asserted that these fixes have removed barriers preventing borrowers from accessing the relief they were entitled to under the law.
The president outlined the broader achievements of his administration in supporting students and borrowers, including achieving the most significant increases in Pell Grants in over a decade, aimed at assisting families with incomes below approximately $60,000 per year. Other accomplishments include fixing the Public Service Loan Forgiveness program and introducing the most generous income-driven repayment plan in history, known as the SAVE plan, he said. Borrowers are encouraged to apply for this plan at <studentaid.gov>.
In response to challenges, including the Supreme Court’s decision on the student debt relief plan, Biden affirmed the administration’s commitment to finding alternative paths to deliver relief to as many borrowers as possible, as quickly as possible.
“From ‘day one’ of my administration, I vowed to improve the student loan system so that higher education provides Americans with opportunity and prosperity, not the unmanageable burdens of student loan debt,” Biden stated. “I won’t back down from using every tool at our disposal to get student loan borrowers the relief they need to reach their dreams.”