(USNewsBreak.com) – As a presidential candidate the first time, Joe Biden centered one of the cornerstones of his campaign on student debt relief. When he became Commander-in-Chief, many thought he was too slow in crafting legislation to bring relief to the masses. Then, multiple legal challenges bogged down his administration when it attempted to forgive up to $20,000 for qualified borrowers. Finally, it succeeded in a small measure and has continued on the path to cancel more debt.
On Wednesday, December 6, the Education Department announced that it had forgiven nearly $5 billion in student loan debt based on previously established parameters. The move affected roughly 80,000 borrowers. Just under half of that, $2.2 billion, resulted from “fixes” to student loan accounts, particularly the federal income-driven repayment process, designed to forgive the balance once a person has successfully paid their loans down over 20 years. This change affected approximately 46,000 borrowers.
The administration used the remainder of the money to forgive those who work in the public sector as teachers, public defenders, and other positions. In an announcement on its page, the Department of Education said it was working to make one-time adjustments, potentially resulting in up to three years of forgiveness on other accounts. This plan follows the Government Accountability Office report that noted the department hadn’t adequately tracked borrower payments and needed to improve.
Yet, while this offers many borrowers assistance, the Biden administration is working to provide more relief. It went back to negotiations and introduced another proposal aimed at helping those affected by interest rates that caused the original amount of their loans to balloon. It also targets low- to moderate-income Americans enrolled in income-based repayment plans who make under $125,000 annually. The new plan could provide relief to millions. However, it could take up to several years before this plan comes to fruition.
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