Biden-Harris Administration Announces $12 Billion in Student Loan Relief
Additional $58 Billion Approved for Loan Forgiveness
The Biden-Harris Administration today announced the automatic discharge of $12 billion in student loans for over 777,000 borrowers. This latest loan forgiveness initiative is part of the administration's ongoing efforts to address the student loan debt crisis.
PSLF Program Changes
In addition to the automatic loan discharges, the administration also announced regulatory changes to the Public Service Loan Forgiveness (PSLF) Program. These changes, which will take effect on July 1, 2023, are designed to make it easier for public service workers to qualify for loan forgiveness.
As part of the PSLF changes, the administration will:
- Count certain periods of forbearance and deferment towards loan forgiveness
- Allow borrowers to consolidate multiple loans into a single Direct Consolidation Loan
- Create a new process for borrowers to apply for forgiveness
SAVE Plan Launch
Today's announcements also mark the launch of President Biden's Student Loan Affordability for Everyone (SAVE) Plan. The SAVE Plan is the most affordable student loan repayment plan ever created and will lower monthly payments for millions of borrowers.
The SAVE Plan includes:
- A lower monthly payment limit of 5% of discretionary income
- A longer repayment period of up to 20 years
- Loan forgiveness after 20 years of payments
The SAVE Plan will be available to all federal student loan borrowers, regardless of their income or debt level. Borrowers can learn more about the SAVE Plan and apply at StudentAid.gov.
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