Biden Administration Announces Additional $74 Billion in Student Loan Forgiveness
Biden-Harris Administration Approves $58 Billion in Relief for 77,700 Borrowers
First Wave of Forgiveness Plan to Launch April 12, 2024
The Biden administration announced Friday that it is using existing student loan forgiveness programs to cancel another round of student debt totaling $74 billion. This latest move is part of the administration's ongoing efforts to provide relief to struggling borrowers and make higher education more affordable.
The $58 billion in additional debt relief will be provided to 77,700 borrowers through the Public Service Loan Forgiveness (PSLF) and Total and Permanent Disability Discharge (TPD) programs. PSLF provides forgiveness for borrowers who work in public service jobs, while TPD provides forgiveness for borrowers who are totally and permanently disabled.
The first wave of forgiveness under this plan will launch on April 12, 2024. Borrowers can apply for forgiveness at studentaid.gov/manage-loans/forgiveness. The Department of Education will implement the remaining full benefits of the SAVE Plan in July 2024, which will further reduce monthly payments from $10,000 to $5,000 for undergraduate loans and from $15,000 to $10,000 for graduate loans.
"This action will make a real difference in the lives of thousands of borrowers across the country," said Education Secretary Miguel Cardona. "Student loan forgiveness is an important tool for reducing the burden of debt and making higher education more affordable. We are committed to continuing to provide relief to borrowers and to making the federal student loan system more effective and equitable."
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