Student Loans Forgiveness: What You Might Have Missed

Let's catch up on the latest news about student loan forgiveness under Biden. Spoiler alert: he's forgiven a whopping $136.6 billion, but universal relief is still a bit elusive. Here's the lowdown on who's benefited and why it's been a bumpy ride.

Biden’s Moves

Under Biden's watch, over 3.7 million borrowers got a break, especially those in Income Driven Repayment  plans and the Public Service Loan Forgiveness program. The administration recently announced $5 billion in relief, with $3.2 billion directed to PSLF participants.

Forgiveness Breakdown

Now, for the forgiveness breakdown. Big shoutout to the PSLF crew – $56.7 billion forgiven for 793,400 of them. IDR plan participants aren't forgotten either, with $45.7 billion off the books for 930,500 borrowers hustling for over 20 years.

Special Mentions

Acknowledging special cases, 513,000 individuals with permanent disabilities have received compassion. Additionally, almost $6 billion has been forgiven for victims of fraudulent practices by certain educational institutions. On more recent news, a fresh initiative targets those on the Saving on a Valuable Education (SAVE) plan, canceling federal student loan balances under $12,000 for those repaying for 10 years.

Hurdles and Hiccups

Despite the strides, hurdles persist. The Supreme Court struck down attempts for a $10,000 universal relief plan last summer. The administration now navigates through the Higher Education Act, opting for targeted relief over a sweeping approach.

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Debates and Developments

Current discussions center around relief for specific borrower groups—those who entered repayment decades ago, those facing financial hardships, and those who underwent programs without financial value. The final plan remains a work in progress, subject to adjustments throughout the process.

The Bottom Line.

Biden's administration has made considerable strides in student loan forgiveness, though the path to universal relief is still blurry. In the meantime, stay updated and continue to make your payments if you have any.

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