Biden Administration Continues to Establish New Pathways for Debt Relief

In the most recent in a long string of debt relief efforts for student loan borrowers, the Biden Administration announced an additional $7.4 billion in student debt relief for 277,000 student borrowers. About half of the amount forgiven is the result of borrowers who have maxed out on payments under the President’s new Saving on Valuable Education (SAVE), income-driven repayment program. 

The Administration also announced a new, temporary program to help borrowers who are incarcerated exit default through access to loan consolidation instead of through loan rehabilitation. Incarcerated borrowers have until September 30, 2024, to sign up for the new program, dubbed Fresh Start.

The Administration also published its proposed rule for comprehensive loan forgiveness that was the subject of a negotiated rulemaking process that extended from last fall through this past winter. The rule is on a fast track with the goal of providing debt relief this coming fall. The Department estimates the new regulations will up the number of Americans who have received debt relief from the Biden Administration from 4.3 million to more than 30 million. Interested parties have until May 17 to submit comments.

For more information, please contact:
Justin Monk