According to USA Today, President Joe Biden has approved a second round of student loan relief, wiping out $4.9 billion in debt for almost 74,000 debtors.
This assistance is intended especially for long-term borrowers who are part of the Public Service Loan Forgiveness (PSLF) program and income-driven repayment programs.
This focused relief has been made possible by the Education Department’s modifications to these programs, which were partially prompted by an unbiased watchdog report.
The president’s most recent effort is reminiscent of earlier relief efforts, demonstrating his determination to secure more targeted loan forgiveness even after the Supreme Court rejected his first relief proposal last summer.
“I won’t back down from using every tool at our disposal to get student loan borrowers the relief they need to,” Biden said, reiterating his resolve.
A reevaluation of the repayment deadlines provided $1.7 billion in assistance for the 29,700 borrowers enrolled in income-driven repayment plans. Following the change, those who had been making loan repayments for more than 20 years were immediately eligible for complete forgiveness.
43,900 borrowers who were registered in the Public Service Loan Forgiveness program received the remaining $3.2 billion, and the federal government accelerated their repayment schedules and reevaluated their payments.
Since last fall, the Biden administration has been continuously examining the accounts of borrowers enrolled in income-driven repayment plans and reevaluating the payments made by PSLF participants.
This calculated move could have an impact on political decisions made in the run-up to the November elections, as it is consistent with the administration’s larger initiative to give student loan relief priority.
