Brandon Poulter on October 4, 2023
The Biden administration announced nearly $9 billion in student loan relief Wednesday that will affect about 125,000 borrowers, according to a press release.
The Supreme Court ruled 6-3 in June that the Biden administration could not cancel student loan debt for non-Pell Grant and Pell Grant recipients, and soon after on June 30 the Department of Education (ED) announced plans to expand income-driven repayment plans, which would cut payments for those making $32,800 or less annually to $0, potentially costing American taxpayers hundreds of billions. Now, the Biden administration has announced a new plan that will add $9 billion in student loan relief through additional forgiveness and income-driven-repayment programs, according to an ED press release.
“President Biden has long believed that college should be a ticket to the middle class, not a burden that weighs on families. That’s why from day one, his Administration has taken unprecedented steps to fix the broken student loan system, make college more affordable, and bring the promise of higher education in reach for more Americans,” the White House said in a press statement.
The program will relieve about $5.2 billion for 53,000 borrowers through Public Service Loan Forgiveness programs, nearly $2.8 billion for almost 51,000 borrowers through fixes to income-driven repayment plans and $1.2 billion for about 22,000 borrowers who have a disability, according to the White House press release.
President Joe Biden is scheduled to make the formal announcement at 1 p.m. ET at the White House, according to The Associated Press.
“For years, millions of eligible borrowers were unable to access the student debt relief they qualified for, but that’s all changed thanks to President Biden and this Administration’s relentless efforts to fix the broken student loan system,” U.S. Secretary of Education Miguel Cardona said in the ED press release.
The Biden administration has approved $127 billion in student debt cancellation for nearly 3.6 million borrowers, according to the White House press release. It has forgiven nearly $42 billion for about 855,000 borrowers through income-driven repayment, nearly $51 billion for 715,000 through the Public Service Loan Forgiveness programs and $11.7 billion for nearly 513,000 borrowers with disabilities.
The ED and White House did not immediately respond to the Daily Caller News Foundation’s request for comment.
