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$9 Billion of Student Loan Debt Forgiven as Payments Resume

$9 Billion of Student Loan Debt Forgiven as Payments Resume

The Biden administration made a significant announcement on Wednesday, granting financial relief to 125,000 Americans by approving $9 billion in student loan forgiveness.

The aid allocation is structured to provide assistance to specific groups within the borrower community. More than $5 billion of this financial relief will be directed toward 53,000 borrowers who have dedicated a decade or more to public service. Additionally, $2.8 billion of the forgiveness will benefit 51,000 borrowers who are enrolled in income-driven repayment plans. Another $1.2 billion will be disbursed to assist 22,000 borrowers with disabilities.

This latest round of forgiveness comes on the heels of a Supreme Court decision earlier this year that struck down President Biden’s plan to cancel up to $20,000 in student debt for millions of Americans. Following this setback, Biden pledged to explore alternative avenues to provide relief to struggling borrowers.

With the latest announcement, the Biden administration has now forgiven $127 billion of student debt for roughly 3.6 million borrowers.

The relief comes on the heels of student loan payments resuming for millions of borrowers after a more than three-year pause.

While President Biden’s $9 billion relief effort has garnered praise, advocates like Astra Taylor, co-founder of the Debt Collective, have called for even more substantial action.

“If the Department of Education can cancel this amount, it can cancel it all—meeting and exceeding the president’s commitment to borrowers currently being crushed by the chaotic return to repayment,” Taylor said.

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