President Joe Biden today has wiped out an additional student debt of $9 billion.
Since he took hold of the office, his administration has totally discharged $127 billion of student loans for over 3.5 million borrowers.
The entire debt that was discharged includes $51 billion for over 715,000 billion loan takers through the PSLF or the public service loan forgiveness; $11.7 billion for the discharges of permanent disability for over 513,000 borrowers; $42 billion for almost 855,000 borrowers under the IDR or the one-time income driven repayment adjustment; and finally, $22.5 billion for over 1.3 million defrauded loan takers, as per the Education Department.
The extra $9 billion, which was announced today by the Education Department, includes $2.8 billion for over 51,000 borrowers that fall under the one time payment adjustment for income driven repayment plans, $5.2 billion for 53,000 borrowers under PSLF, and $1.2 billion for almost 22,000 borrowers that have total or permanent disabilities.
This announcement came after the borrowers had started paying their loans back this month after a pandemic forbearance pause for three years.
“Today’s announcement builds on everything our administration has already done to protect students from unaffordable debt, make repayment more affordable, and ensure that investments in higher education pay off for students and working families.”
US Secretary of Education Miguel Cardona said in a press release.
Teachers, doctors, nurses, lawyers, and other professionals serving the public service jobs related to state, federal, local, or special nonprofit organizations will fall under the eligibility to discharge the rest of their loans after paying through the PSLF program for ten years. Borrowers who are totally or permanently disabled will also be eligible for the student loan debt discharges.