The Biden administration said on Wednesday that it would forgive $7.7 billion in student loans for more than 160,000 borrowers, its latest effort to reduce the burden of education debt on households.
The relief is a result of the U.S. Department of Education’s improvements to its income-driven repayment plans and Public Service Loan Forgiveness program.
“The Biden-Harris Administration remains persistent about our efforts to bring student debt relief to millions more across the country,” said Education Secretary Miguel Cardona in a statement.
Wednesday’s loan forgiveness includes $5.2 billion for 66,900 borrowers pursuing Public Service Loan Forgiveness, and $1.9 billion for 39,200 people enrolled in income-driven repayment plans.
Another $613 million will go to 54,300 borrowers under the Biden administration’s new income-driven repayment option, known as the Saving on a Valuable Education, or SAVE, plan. That option leads to student loan forgiveness after 10 years for those who originally borrowed $12,000 or less.
Including Wednesday’s round of relief, the Biden administration has so far excused the debt of 4.75 million borrowers, totaling $167 billion in aid. Much of that total comes from expanding the reach of and making fixes to these programs.
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