Biden administration to forgive $4.8 billion in student loan debt for 80,300 borrowers

WASHINGTON - The Biden administration announced Wednesday that it would forgive an additional $4.8 billion in student loan debt, for 80,300 borrowers.

The relief is a result of the U.S. Department of Education’s fixes to its income-driven repayment plans and Public Service Loan Forgiveness program.

“Before President Biden took office, it was virtually impossible for eligible borrowers to access the student debt relief they rightfully earned,” U.S. Secretary of Education Miguel Cardona said in a statement. “This level of debt relief is unparalleled and we have no intention of slowing down.”

More than $2 billion of the aid will go to nearly 46,000 borrowers enrolled in income-driven repayment plans. Those plans are supposed to lead to debt forgiveness after a set period, but this often didn’t happen because loan servicers failed to keep track of borrowers’ payments, experts say.

In addition, 34,400 borrowers who have worked in public service for a decade or more will receive $2.6 billion in loan cancellation, the U.S. Department of Education said. Borrowers in the Public Service Loan Forgiveness program have also struggled to get the debt erasure they’ve been promised due to errors in their payment counts and other issues.

The Biden administration has now cancelled nearly $132 billion in student debt for more than 3.6 million Americans.

Voters support forgiving at least some student loan debt by a 2-to-1 margin, according to a Politico/Morning Consult poll. Less than a third oppose the policy. (Source: CNBC)