Student Loan Forgiveness: A New Era of Relief
Biden Administration Clears $600 Million in Debt for Thousands of Borrowers
In a significant move, the Biden administration has announced its final round of student loan forgiveness, wiping out over $600 million in debt for thousands of borrowers. This relief will benefit 4,550 borrowers eligible for debt cancellation through the Income-Based Repayment plan, as well as 4,100 former students of DeVry University.
DeVry University Misrepresentations Lead to Debt Cancellation
The U.S. Department of Education cleared the debts of the latter group based on findings announced in February 2022 that DeVry University made widespread substantial misrepresentations about its job placement rates. DeVry University did not immediately respond to a request for comment.
A Legacy of Student Loan Forgiveness
President Joe Biden is set to leave office having forgiven a staggering $188.8 billion in student debt for 5.3 million borrowers. This achievement marks a significant milestone in the administration’s efforts to address the country’s outstanding student debt.
Improving Existing Debt Relief Programs
While the Supreme Court blocked Biden’s plan for wide-scale student loan forgiveness in 2023, the administration still managed to make a significant impact by improving the Education Department’s existing debt relief programs. “Four years ago, President Biden made a promise to fix a broken student loan system,” said U.S. Secretary of Education Miguel Cardona. “We rolled up our sleeves and, together, we fixed existing programs that had failed to deliver the relief they promised.”
Accurate Payment Counts for Borrowers
The U.S. Department of Education also announced the completion of its payment count adjustment for borrowers enrolled in income-driven repayment plans. This move ensures that borrowers can now see an accurate payment count by logging into their accounts on Studentaid.gov.
A New Era of Financial Breathing Room
The Biden administration’s efforts have brought financial relief to hardworking Americans, fixing a broken student loan system and taking bold action on behalf of borrowers who had been cheated by their institutions. As the administration marks the end of an era, it’s clear that its legacy will have a lasting impact on the lives of millions of borrowers.
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