26 Million Student Loan Borrowers on the Edge of Financial Freedom: Biden Administration’s Update

The Biden administration has released new data showing the progress of its student loan forgiveness program. According to the White House, 26.26 million student loan borrowers have applied for or been deemed eligible for relief, and 16.48 million fully approved applications have been sent to loan servicers for discharge. The program has faced multiple lawsuits and injunctions, causing the Education Department to stop accepting applications in November 2022 and loan servicers from discharging any debt, as reported by Go Banking Rates.

The White House has estimated that 40 million borrowers would qualify for a student loan program, with 90% of benefits going to those earning less than $75k per year. The program has been halted and is waiting for a Supreme Court decision on February 28, 2023. The student loan pause has been extended until June 2023.

Under Biden’s plan, eligible borrowers can receive up to $10,000 in federal student debt relief if their 2020 or 2021 income is less than $125,000. For Pell Grant recipients, the amount increases to $20,000. The eligibility of dependent students is based on their parental income. Most federal loans, including FFEL program loans, Perkins loans, and defaulted loans, are eligible for the program.

While the program has faced setbacks, there have been positive developments as well. On Jan. 20, Arizona’s new Democratic attorney general dismissed one of the lawsuits filed by the previous Republican attorney general. With the Supreme Court’s decision approaching, millions of borrowers are hoping for relief from their student debt.