An email from President Joe Biden addressed more than 800,000 student loan borrowers on Tuesday who had their debt wiped out by his administration’s forgiveness efforts.
“For too long, the student loan program has failed to live up to its commitments — and millions like you have not received the relief you owe because of administrative errors and failures,” the email read. . “I vowed to fix that, and I’m proud that my administration kept that promise.”
What You Need to Know
- An email, signed by President Joe Biden, notified more than 800,000 student loan borrowers that their debt has been forgiven.
- The email mentioned more than $127 billion in loan cancellations for 3.6 million borrowers that were achieved through the administration’s efforts.
- More than 5.5 million people have signed up for a newly created loan repayment plan, made before the pandemic-paused loan payments due to start again in October
“I hope this relief gives you a little more breathing space,” Biden wrote in an email. “I’ve heard from countless people who have told me that relieving the burden of student loan debt will allow them to support themselves and their families, or pursue life plans they’ve put on hold. ”
The email reiterated the actions the administration has taken so far to reduce student debt: $127 billion in loan debt cancellation for 3.6 million borrowers; a $900 increase in Pell Grants over the past two years, bringing the maximum amount of grants to nearly $7,400 a year; changes to the Public Service Loan Forgiveness program that seeks to provide relief to federal borrowers who have gone into public service; and new debt relief rules.
The email also referenced the SAVE Plan, a new income-driven student loan repayment plan that counts more than 5.5 million enrollees, according to the White House. The plan, which doesn’t require borrowers to make less than $15 an hour to make payments and is said to save $1,000 a year in fees compared to other income-driven plans, is implemented in a flow of payments starting also in October.
“I am proud that we have been able to provide borrowers like you with the relief you have earned,” the email read. “I promise you that as long as I am President, I will not stop fighting for hardworking American families.”
The email also asked recipients to “share (their) story about what this relief means to (them),” then
Loan payments have been on hold for more than three years due to the pandemic, leading to confusion among borrowers and lenders, and subsequent sanctions against lenders by the federal government. On October 30, the Department of Education withheld $7.2 million in payments to MOHELA, a student loan servicer, for failing to timely send billing statements to 2.5 million borrowers, causing more than 800,000 borrowers defaulting on their loans as a result. .
“The actions we have taken send a strong message to all student loan servicers that we will not allow borrowers to suffer the consequences of serious servicing failures. and make every step possible to improve the results for borrowers,” said Education Secretary Miguel Cardona.
The administration’s efforts to cut student loan debt doubled after the Supreme Court’s June decision struck down Biden’s plan to cancel nearly $400 million in student loan debt.