Biden Administration Earmarks Additional $9B in Student Loan Relief for 125,000 Borrowers

The Biden administration on Wednesday approved an additional $9 billion in student loan relief for up to 125,000 borrowers.1

The package includes $5.2 billion in debt relief for 53,000 borrowers under the Public Service Loan Forgiveness program, a debt relief program for public sector workers who have worked for the government, whether on the federal, state, or local level, or a non-profit organization for 10 years or more.2

Nearly $2.8 billion is allocated for about 51,000 borrowers on income-driven repayment plans—specifically those who been paying off student loans for more than 20 years and haven’t received any relief in the past.

Today’s relief announcement also earmarks $1.2 billion for 22,000 borrowers with disabilities that have been approved for discharge by the Social Security Administration.3

This could be a welcome relief for some borrowers after repayments of student loans began at the start of this month, especially as the cost of living has gone up.

The latest round of student debt relief adds up to a total of $127 billion approved by the Biden administration, collectively affecting 3.6 million borrowers.4 Even though the Supreme Court struck down student loan forgiveness back in June, the Biden administration has moved forward with alternative programs, like the Save for a Valuable Education (SAVE) plan, that tailor student loan payments to a borrower’s income and provide relief to some borrowers.5