Biden Administration Takes Historic Step, Forgiving $39 Billion in Student Loan Debt

Relief provided for long-term borrowers as part of ongoing efforts to address student loan crisis

In a significant move aimed at tackling the growing burden of student loan debt, the Biden administration has announced the forgiveness of $39 billion in student loan debt. This relief will benefit 804,000 borrowers who have diligently made payments for over two decades, only to face various challenges, including improper loan servicing practices and inadequate credit for their monthly payments.

The announcement underscores President Joe Biden's and Vice President Kamala Harris's commitment to helping individuals progress in their lives, whether it be starting a family, purchasing a home, or pursuing entrepreneurial endeavors. By addressing harmful practices and reducing the student loan debt burden, the administration aims to provide tangible relief to those burdened by educational loans.

The decision to forgive the significant sum of student loan debt is rooted in a recognition of the injustices faced by borrowers who have faithfully made payments for 20 years or more. Many of these borrowers were wrongly placed into forbearance by loan servicers, which violated established rules, while others did not receive proper credit for their monthly payments. This latest action represents a crucial step towards rectifying these issues and providing long-overdue relief.

The pursuit of a comprehensive solution to the student loan crisis has been a priority throughout Vice President Kamala Harris's career. During her tenure as California Attorney General, she secured a landmark victory, winning $1 billion in compensation for defrauded veterans and students by holding predatory for-profit colleges accountable.

The Biden administration's commitment to alleviating the student loan burden does not end with this historic forgiveness. Last month, President Biden announced the pursuit of an alternative path to provide further relief through the Higher Education Act. Additionally, the administration has recently finalized a new income-driven repayment plan, which will reduce monthly payments by half for undergraduate loans. These actions are aimed at ensuring that all Americans have access to high-quality postsecondary education without the heavy burden of unmanageable student loan debt.

The forgiveness of $39 billion in student loan debt marks a significant milestone in the Biden administration's ongoing efforts to address the student loan crisis and build a fairer and more equitable future for all Americans. By taking decisive action, the administration aims to provide relief to borrowers who have faithfully fulfilled their financial obligations while creating a more accessible and affordable higher education system for future generations.