Biden Administration Announces Final Round of Student Loan Forgiveness
The Biden administration has announced its final round of student loan forgiveness, clearing over $600 million in debt for thousands of borrowers. The relief will go to 4,550 borrowers entitled to debt cancellation through the Income-Based Repayment plan, as well as 4,100 former students of DeVry University.
The U.S. Department of Education cleared the debts of the DeVry University group based on findings that the for-profit chain made widespread substantial misrepresentations about its job placement rates. However, the school’s public relations director, Hessy Fernandez, stated that the school cannot comment on the announcement due to ongoing litigation.
The announcement comes as President Joe Biden’s term is coming to an end, marking “the end of an era” for student loan forgiveness. During his presidency, Biden has forgiven over $188.8 billion in student debt for 5.3 million borrowers.
The Biden administration’s efforts to address the student loan crisis have faced setbacks, including the U.S. Supreme Court’s 2023 decision to block a plan to deliver widespread student loan forgiveness. However, the administration has still managed to make significant progress, improving existing debt relief programs and taking action against institutions that have cheated borrowers.
The U.S. Department of Education has also completed its payment count adjustment for borrowers enrolled in income-driven repayment plans, which can lead to loan forgiveness after a certain period of time. Borrowers can now check their accurate payment count by logging into their accounts on Studentaid.gov.
