The Biden administration announced another $9 billion in student loan forgiveness on Wednesday as part of “fixes” to its debt reduction programs.
Why it matters: The relief follows the resumption of student loan payments for millions of borrowers after a more than three-year hiatus.
The Biden administration has now forgiven $127 billion in student debt for about 3.6 million borrowers, according to a press release from the White House.
Of those, 53,000 will benefit from the Public Service Loan Forgiveness program, which forgives student loan balances for public employees who have worked for 10 years and made 120 qualifying payments.
An income-driven repayment plan will benefit around 51,000 borrowers. This will apply to persons who have worked for 20 years or more but have never obtained the debt forgiveness to which they are entitled.
According to the White House, around 22,000 borrowers with “total or permanent” disabilities will also benefit from the assistance.
“Today’s announcement builds on everything our administration has already done to protect students from unaffordable debt, make repayment more affordable, and ensure that investments in higher education pay off,” Education Secretary Miguel Cardona said in a statement on Wednesday.
Although student loan payments resumed on October 1, interest on federal student loans began accruing on September 1.
Some experts have warned that the restart of payments could have an impact on the economy, while others believe it would be more subdued.
This summer, the Supreme Court overturned President Biden’s student loan forgiveness plan.