Biden Administration Provides $1 Billion of Student Loan Forgiveness

The Biden administration recently announced that the U.S. Department of Education will proceed to cancel student loans for 72,000 student loan borrowers who previously had some student loans cancelled, but now will get full student loan cancellation.

According to the administration, these borrowers, who were the subjects of fraud or school closure, were only given partial forgiveness under the Trump administration.

However, federal law protects borrowers against schools engaged in deceptive or illegal practices or closed suddenly

Moving forward, U.S. Secretary of Education Miguel Cardona is looking to change the formula for student loan forgiveness with a new standard that will provide “a streamlined path” so borrowers can get full student loan cancellation

Student borrowers can expect to see new policies within the next few months to advocate for their rights and result in more student loan forgiveness, which includes improving income-driven repayment plans.

“Borrowers deserve a simplified and fair path to relief when they have been harmed by their institution’s misconduct,” Cardona said. “A close review of these claims and the associated evidence showed these borrowers have been harmed, and we will grant them a fresh start from their debt.”