The Biden administration has used its pandemic-related authority to take a chainsaw to several federal student loan programs. The piecemeal fixes it has implemented have delivered the largest student loan forgiveness actions this country has seen.
To date, the Education Department has wiped out over $20 billion owed by public servants, disabled persons, and those defrauded by their schools.
More relief is on the way. By the end of the year, thousands more people will have made enough IDR payments to have their remaining balance erased. And before payments resume, millions of borrowers will be pulled out of default and returned to good standing, avoiding harsh collection activities like wage garnishment and tax refund offset.
Payments are expected to restart in September, but President Biden is widely expected to delay that date again — possibly to leave time to forgive more debt using his executive authority.
Advocates and Democratic lawmakers continue to press the president to fulfill his campaign promise to wipe away $10 thousand in student loan debt. Forgiving that amount per borrower would require the government to write off $321 billion in loans, according to an analysis by the Federal Reserve Bank of New York.
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