Latest News on Student Loans: Biden Administration's New Relief Measures
1. New Debt Relief Measures: The Biden Administration has proposed a series of new regulations to provide partial or full debt relief to several groups of borrowers. These include individuals whose loan balances have increased due to interest, those who have been repaying loans for decades, and those eligible for loan forgiveness but who have not yet applied. This initiative is expected to impact nearly 23 million borrowers, many of whom are Pell Grant recipients. If these rules are finalized, eligible borrowers will receive relief without the need to apply, although they can opt out by contacting their loan servicer().
2. Major Announcements in 2024: In 2024, the Administration approved an additional $7.7 billion in student debt relief for 160,000 borrowers, bringing the total relief under Public Service Loan Forgiveness (PSLF) to $68 billion for over 942,000 borrowers. Additionally, $613 million was approved for borrowers under the SAVE Plan, aimed at providing forgiveness to those with smaller loans after at least 10 years of payments().
3. Income-Driven Repayment (IDR) Adjustments: Administrative adjustments to IDR payment counts have brought many borrowers closer to loan forgiveness. These adjustments have addressed long-standing issues with forbearance misuse by loan servicers, resulting in over $51 billion in relief for more than 1 million borrowers. The Administration’s continuous efforts to fix these problems reflect a commitment to rectifying past errors and ensuring fair treatment for all borrowers().
4. Targeted Relief for Specific Groups: The Administration has focused on helping borrowers who have been cheated by their schools, saw their institutions close suddenly, or are covered by related court settlements. For example, $28.7 billion in relief has been provided to over 1.6 million borrowers who fit this category. In addition, $14.1 billion has been approved for more than 548,000 borrowers with total and permanent disabilities().
5. Upcoming Changes and Public Comments: In April 2024, the Administration unveiled details of new plans designed to expand student debt relief to tens of millions more borrowers. These proposals include waiving accrued interest, automatically discharging debts for eligible borrowers not enrolled in forgiveness programs, and eliminating student debt for those in repayment for 20 years or more. Public comments on these proposals closed in May, and the Department of Education is reviewing feedback with the aim to finalize these rules by fall 2024().
6. Ongoing Efforts and Impact: The Biden-Harris Administration’s efforts represent a comprehensive attempt to alleviate the student loan crisis. These include securing the largest increase to the maximum Pell Grant in a decade and establishing new protections against career programs that leave graduates with unmanageable debts. The Administration’s actions are expected to not only reduce financial strain on borrowers but also positively impact broader economic factors such as consumer spending, homeownership, and overall financial security().
7. Future Outlook: The path forward for student loan borrowers looks increasingly optimistic as the Biden Administration continues to push for reforms. These ongoing efforts aim to address systemic issues within the student loan system and make higher education more accessible and affordable. With further regulatory changes expected later this year, millions more could benefit from reduced loan burdens, setting a transformative precedent in U.S. educational policy.
For more detailed information about these new student loan relief measures, visit the U.S. Department of Education’s official page here(,,).
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