Skip to main content

Biden Admin Cancels Another $9B in Student Debt, Affecting 125,000 Borrowers

Biden administration to cancel $9 billion in student debt for 125,000 borrowers

Roughly 125,000 borrowers will have $9 billion in student debt cancelled, the Biden administration announced Wednesday. 

The cohort receiving the relief includes three groups of borrowers who have been eligible to have their debt forgiven for years but struggled to access that benefit. They are public servants who have been working for the government or certain nonprofits for more than 10 years and paying on their student loans during that time; borrowers who have been in repayment on their loans for more than 20 years; and borrowers who are severely disabled. 

Student loan debt forgiveness arrives for some borrowers as payments resume for others

Another 125,000 student loan borrowers will have $9 billion in student loan debt erased, the Biden administration said Wednesday. 

Those borrowers were already eligible for cancellation through various programs: Public Service Loan Forgiveness for people working as teachers and health care workers, for instance; income-driven repayment plans that link payments to wages and forgive balances after 20 or 25 years of payments; or discharges for those with disabilities.