Biden Administration Cancels $12 Billion in Student Loan Debt
Historic Announcement Benefits 153,000 Borrowers
Debt Forgiveness for Public Servants and Income-Driven Plan Enrollment
Washington, D.C. - The Biden-Harris Administration has announced the automatic discharge of $12 billion in student loans for nearly 153,000 eligible borrowers. This move marks a significant step towards addressing the burden of student debt in the United States. The cancellation is a result of recent regulatory changes implemented by the Federal Student Aid (FSA) program. Effective July 1, 2023, these changes provide a reduced time-to-forgiveness benefit for public service workers enrolled in the Public Service Loan Forgiveness (PSLF) Program. "This is an important step towards addressing the outsized burden of student loan debt on our nation's public servants," said U.S. Secretary of Education Miguel Cardona. "Today's announcement will help ensure that these dedicated workers can continue to serve their communities without being weighed down by excessive debt." In addition to the automatic loan forgiveness, the Administration is also encouraging borrowers to enroll in income-driven repayment plans. These plans adjust monthly payments based on income and family size, providing relief to borrowers who may be struggling to repay their loans. "We want to make sure that all student loan borrowers have access to affordable repayment options," said Cardona. "Income-driven plans can provide significant savings and help borrowers avoid default." Borrowers can learn more about the PSLF Program and apply for income-driven repayment plans at StudentAid.gov. "This announcement is a game-changer for our public servants," said American Federation of Teachers President Randi Weingarten. "It's a recognition of the essential role they play in our society and a testament to the Biden-Harris Administration's commitment to working families."
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