Biden Foundation Forgives $39B In Student Loan Debt

Joe Biden
CHICAGO, ILLINOIS – JUNE 28: U.S. President Joe Biden unveils his economic plan during an event in the lobby of the old post office building on June 28, 2023 in Chicago, Illinois. He is also scheduled to attend a fundraising event during the visit. (Photo by Scott Olson/Getty Images)
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On Friday, the Biden-Harris Administration announced it has automatically forgiven $39 billion in student loan debt. This in turn, impacts upward of 800,000 people.

This act comes after the Supreme Court shut down President Biden’s previous attempt to cancel student loan debt nationwide which would have relieved about 37 million people.

Friday’s announcement applies to borrowers who previously enrolled in income-driven repayment plans. Borrowers were supposed to have their debt canceled after they have made payments for 20 years or 25 years. However, because of some of the system’s failures, many borrowers’ payments have been miscounted. This milestone plan is executed through “fixes” to the count of monthly payments borrowers have made thus far.

“For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress toward forgiveness,” Education Secretary Miguel Cardona said in a statement Friday. “By fixing past administrative failures, we are ensuring everyone gets the forgiveness they deserve.”

Qualifying borrowers who have met the necessary threshold for forgiveness will be notified. Types of loans covered include Direct Loans or Federal Family Education Loans held by the Education Department, including Parent PLUS loans.