The Biden administration has announced a significant milestone in student loan forgiveness, canceling over $600 million in debt for thousands of borrowers. This marks the conclusion of President Joe Biden’s efforts to overhaul the student loan system, with a total of $188.8 billion forgiven for 5.3 million borrowers during his presidency.
Who Benefits from the Latest Round of Forgiveness?
The final round of forgiveness provides relief for 8,650 borrowers, including 4,550 eligible under the Income-Based Repayment (IBR) plan and 4,100 former students of DeVry University. The U.S. Department of Education attributed the DeVry cancellations to the university’s misrepresentation of job placement rates, a finding first reported in 2022.
Hessy Fernandez, senior director of public relations at DeVry University, commented on the ongoing litigation, stating, “DeVry supports sensible safeguards to protect students and taxpayers alike,” while also criticizing the framework for loan forgiveness as lacking robust due process.
An Era of Transformative Student Loan Policies
President Joe Biden leaves office as the most impactful president in terms of student loan forgiveness. “President Biden forgave and discharged more student loans than any previous president,” said higher education expert Mark Kantrowitz.
Despite the Supreme Court blocking his plan for widespread debt cancellation, the administration leveraged existing programs to deliver relief to millions.
Secretary of Education Miguel Cardona highlighted the administration’s commitment: “Four years ago, President Biden made a promise to fix a broken student loan system. Together, we fixed existing programs, took bold action for defrauded borrowers, and brought financial breathing room to hardworking Americans.”
Fixing Income-Driven Repayment Plans
The Department of Education also completed its payment count adjustment for borrowers in income-driven repayment (IDR) plans. These plans offer loan forgiveness after 20 or 25 years of repayment, but many borrowers faced discrepancies in their repayment timelines due to mismanagement by loan servicers.
The Biden administration’s adjustments ensure that borrowers now have accurate payment counts. Borrowers can review their updated records by logging into their accounts on Studentaid.gov.
A Legacy of Reform
This final round of forgiveness underscores the administration’s focus on addressing systemic issues in the student loan system. While some of Biden’s initiatives faced legal hurdles, the cumulative impact of his reforms has brought relief to millions of Americans burdened by student debt.
As the era of Biden’s student loan policies comes to a close, the future of such programs remains uncertain. However, for millions of borrowers, the changes implemented during his term represent a significant step toward financial stability.
