Student loan forgiveness chatter is everywhere. Since President Biden moved into the White House, nearly 1.8 million federal student loan borrowers have received almost $38 billion in relief through existing forgiveness programs. Beneficiaries include:
Former students of schools that enticed them to enroll by using illegal recruiting tactics, inflating job prospects, and making false promises about future earnings.
Teachers, nurses, military service members, and other public servants who’ve spent a decade or more working full-time for the government or a nonprofit organization.
People who could no longer work due to a permanent mental or physical disability.
The U.S. Department of Education will add to that total once it finishes its one-time review of borrowers’ accounts to give them credit toward income-driven repayment plan forgiveness. Read more about the IDR Waiver.
This dizzying amount of debt forgiveness doesn’t include the relief promised under President Biden’s student loan forgiveness plan, which is on hold until the courts decide whether to set aside several legal challenges. About 26 million Americans applied for relief before litigation forced the department to halt the application process.
As the Biden administration tries to fend off lawsuits over the debt relief program, the White House announced it would extend the pandemic-related payment pause until possibly Sep. 1.
Related: Student Loan Pause Extension 2023
Borrowers will resume payments 60 days after the court cases are resolved, according to the department. If the courts haven’t resolved the issue by June 30, payments will start 60 days later.
Related: When Do Student Loan Payments Start Again?