July 18, 2023
Round-up: Biden Administration to Forgive $39 Billion in Student Loans
Some 804,000 borrowers will have their student loans forgiven in the next month under a revised Income-Driven Repayment (IDR) plan estimated to cost $39 billion, the Biden Administration announced July 14.
The adjustment is part of an effort to address failures in administering the income-driven repayment system “in which qualifying payments made under IDR plans that should have moved borrowers closer to forgiveness were not accounted for,” the Education Department said in a news release.
The first group of borrowers reportedly have made enough payments over 20 to 25 years to see the rest of their balances wiped out. The Education Department will continue to track borrowers who reach the forgiveness thresholds every two months until next year.
The administration said in April 2022 that it would adjust accounts to give borrowers credit for payments and time spent in repayment. The announcement comes less than two weeks after the Supreme Court rejected the administration’s plan to forgive up to $20,000 in student loan debt for Pell eligible students.
Below is media coverage of the announcement and continuing coverage of the fallout of the Supreme Court decision:
$39 Billion in Student Loan Relief for 804,000 People
Inside Higher Ed (July 17, 2023)
Biden Administration Announces $39 Billion in Student Loan Forgiveness
The Washington Post (July 14, 2023)
Education Dept. Cancels $39 Billion in Student Debt for 800,000 Borrowers
The New York Times (July 14, 2023)
Biden Administration to Wipe Out $39 Billion in Student Loans for 800,000 Borrowers
The Wall Street Journal (July 14, 2023)
Paying Student Loans Again Could Feel Like a 5% Pay Cut
The Wall Street Journal (July 15, 2023)
Who Has Student Loan Debt in America?
The Washington Post (July 14, 2023)
Biden’s Latest Student Loan Forgiveness Scheme - Editorial
The Wall Street Journal (July 14, 2023)
The adjustment is part of an effort to address failures in administering the income-driven repayment system “in which qualifying payments made under IDR plans that should have moved borrowers closer to forgiveness were not accounted for,” the Education Department said in a news release.
The first group of borrowers reportedly have made enough payments over 20 to 25 years to see the rest of their balances wiped out. The Education Department will continue to track borrowers who reach the forgiveness thresholds every two months until next year.
The administration said in April 2022 that it would adjust accounts to give borrowers credit for payments and time spent in repayment. The announcement comes less than two weeks after the Supreme Court rejected the administration’s plan to forgive up to $20,000 in student loan debt for Pell eligible students.
Below is media coverage of the announcement and continuing coverage of the fallout of the Supreme Court decision:
$39 Billion in Student Loan Relief for 804,000 People
Inside Higher Ed (July 17, 2023)
Biden Administration Announces $39 Billion in Student Loan Forgiveness
The Washington Post (July 14, 2023)
Education Dept. Cancels $39 Billion in Student Debt for 800,000 Borrowers
The New York Times (July 14, 2023)
Biden Administration to Wipe Out $39 Billion in Student Loans for 800,000 Borrowers
The Wall Street Journal (July 14, 2023)
Paying Student Loans Again Could Feel Like a 5% Pay Cut
The Wall Street Journal (July 15, 2023)
Who Has Student Loan Debt in America?
The Washington Post (July 14, 2023)
Biden’s Latest Student Loan Forgiveness Scheme - Editorial
The Wall Street Journal (July 14, 2023)