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In a significant move to address the student debt crisis, the Biden istration announced its "final round" of student loan forgiveness, providing relief to thousands of borrowers.
This effort, which has been a cornerstone of President Joe Biden's istration, includes more than $600 million in debt cancellation, further cementing his legacy in education reform.
A Breakdown of the Latest Forgiveness Effort
The latest wave of relief targets two distinct groups:
1. Borrowers in the Income-Based Repayment (IBR) Plan
Over 4,550 borrowers enrolled in the IBR plan are set to have their loans forgiven. This program offers loan forgiveness to individuals who have made qualifying payments for a set duration-typically 20 to 25 years.
2. Former DeVry University Students
Additionally, 4,100 borrowers who attended DeVry University will benefit from loan forgiveness. The Education Department found that the for-profit institution had misrepresented its job placement rates, a violation that led to this corrective action. These students are receiving relief as part of the istration's broader crackdown on fraudulent practices in higher education.
Since taking office, Biden's istration has forgiven $188.8 billion in student loans, positively impacting 5.3 million borrowers.
A Commitment to Fairness
"Four years ago, President Biden made a promise to fix a broken student loan system," said Education Secretary Miguel Cardona. "We rolled up our sleeves and, together, we fixed existing programs that had failed to deliver the relief they promised."
Part of this fix included addressing longstanding issues within the Income-Driven Repayment (IDR) plan. Borrowers have long voiced frustrations over mismanaged payment tracking, which delayed or denied forgiveness.
The istration worked to resolve this, recalibrating payment counts and ensuring borrowers could track their progress through StudentAid.gov. This online tool now provides detailed payment histories and estimates forgiveness timelines.
The Department of Education also extended relief to students affected by institutional closures. Borrowers previously ineligible because they left more than 120 days before a school's closure may now qualify for forgiveness under specific circumstances.
This includes former students of institutions like the Art Institutes, Argosy University, and others impacted by closures between 2015 and 2023.
A Legacy of Unparalleled Forgiveness
Despite the Supreme Court's 2023 decision to block Biden's broader student debt relief plan, his istration has delivered unprecedented forgiveness by enhancing existing programs and targeting predatory practices in higher education.
Borrowers can check their eligibility for relief or report fraudulent activity through the Federal Student Aid website.
This final initiative brings financial relief to many and underscores the istration's commitment to repairing the student loan system. As Biden's term concludes, these efforts leave an indelible mark on education reform, providing countless Americans with a renewed sense of financial stability.