Department of Education Announces Additional $4.9 Billion in Approved Student Debt Relief
Government
The debt relief is broken down into the following categories:
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$1.7 billion for 29,700 borrowers through administrative adjustments to IDR payment counts that have brought borrowers closer to forgiveness and address longstanding concerns with the misuse of forbearance by loan servicers.
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$3.2 billion for 43,900 borrowers through PSLF. This includes borrowers who have benefitted from the limited PSLF waiver as well as regulatory improvements made to the program by the Administration. Total relief through PSLF is now $56.7 billion for 793,400 borrowers since October 2021.
Continued debt relief for borrowers
The U.S. Department of Education (Department) is fast-tracking additional loan forgiveness through early implementation of the Saving on a Valuable Education (SAVE) Plan. Borrowers who originally took out $12,000 or less for college and are enrolled in the SAVE Plan will see forgiveness after as few as 10 years of payments. Those who are enrolled in SAVE and are eligible for early forgiveness will have their debts automatically cancelled starting next month, months ahead of schedule, with no action needed.
The Department began communications with borrowers who may be eligible but are not already enrolled in SAVE to encourage them to sign up. The Department is also working with its partners through the SAVE on Student Debt campaign to reach eligible borrowers and provide resources to sign up for SAVE.