Biden Administration Announces Plans to Expand Student Loan Debt Forgiveness Program

Biden administration has announced plans to reform and expand its student loan forgiveness and income based repayment programs. The Department of Education noted in their press release that more than 3.6 million student loan recipients will benefit. At least 40,000 people under the current Public Service Loan Forgiveness Program will receive immediate debt cancellation. Department of Education also took accountability for the failures in the past with its student loan program and not providing the proper support to borrowers during COVID-19 pandemic.

“Student loans were never meant to be a life sentence, but it’s certainly felt that way for borrowers locked out of debt relief they’re eligible for,” said U.S. Secretary of Education Miguel Cardona. “Today, the Department of Education will begin to remedy years of administrative failures that effectively denied the promise of loan forgiveness to certain borrowers enrolled in IDR (income-driven repayment) plans. These actions once again demonstrate the Biden-Harris administration’s commitment to delivering meaningful debt relief and ensuring federal student loan programs are administered fairly and effectively.”