Here’s Who Qualifies For The $25 Billion Student Loan Forgiveness Already Approved

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(NEXSTAR) — Although widespread student loan forgiveness has yet to become a reality, some U.S. borrowers have already received debt relief. About 1.3 million borrowers have seen $25 billion in student debt forgiveness since President Biden took office.

On Wednesday, the Department of Education announced it would cancel outstanding federal student loans from former Corinthian Colleges students after the school faced multiple investigations and was accused of defrauding students on millions of loans guaranteed by the federal government. A total of $5.8 billion in loans will be canceled for 560,000 borrowers, making it the largest loan issued by the Department of Education.

This is the second bulk discharge of student loans by the Biden administration. The first was in April when loans were released for former students of Marinello beauty schools. have been approved.

Here is a breakdown of the student debt forgiveness already approved by the Biden administration.

Borrowers defrauded by their school

According to the Department of Education, about 690,000 borrowers have seen a total of $7.9 billion in student loans forgiven through releases due to borrower advocacy and school closures, such as the group release for Corinthian College students.

In April, the ministry announced the discharge of $238 million in student loans for 28,000 borrowers who attended Marinello Beauty Schools between 2009 and its closure in February 2016. During those seven years, the school is accused of harming these borrowers with “widespread and widespread misconduct” .

Other borrowers receiving debt relief after being scammed by their school include alumni of DeVry University, ITT Technical Institute Nursing Program, Westwood College, and Minnesota School of Business/Globe University Criminal Justice Programs.

Borrowers in total & permanent disability

More than 400,000 borrowers have received more than $8.5 billion in debt forgiveness through full and permanent disability release under the Biden administration.

In August, more than 323,000 borrowers got more than $5.8 billion in automatic student loan discharges under a new regulation from the Department of Education. To identify eligible borrowers, officials used existing data from the Social Security Administration.

Using this data mapping, Federal Student Aid Chief Operating Officer Richard Cordray said in April that approximately 15,000 to 20,000 newly eligible borrowers will have their loans canceled each quarter.

PSLF relief

In total, more than 113,000 borrowers have received $6.8 billion in debt forgiveness “thanks to enhancements to the Public Service Loan Forgiveness (PSLF)” under the Biden administration, according to the Department of Education.

Last October, an overhaul of the PSLF program was expected to allow 22,000 borrowers with consolidated loans to immediately qualify for $1.74 billion in forgiveness without further action. Meanwhile, the Department of Education said another 27,000 borrowers could qualify for a $2.82 billion discount if they were able to “certify additional periods of employment”.

By the end of 2021, the The Biden administration said More than 70,000 borrowers were able to benefit from nearly $5 billion in federal student loan forgiveness due to changes to the PSLF program.

In April, the Biden administration announced new actions by the Department of Education to “fix the longstanding failures of the student loan programs.” A estimated at 40,000 borrowers have become eligible for “immediate debt cancellation” as they are now eligible for PSLF under the new amendments.

What about the widespread cancellation of student loans?

The White House indicated it was nearing a decision on broad student loan debt forgiveness, focusing on forgiveness of $10,000 per borrower, but did not say a decision was finalized. . President Biden has already confirmed he “does not contemplate a $50,000 debt reduction”.

That of the Federal Reserve analysis found that by forgiving $10,000 per borrower, about 11.8 million borrowers – just over 31% – would have their balances wiped out entirely. If the Biden administration were to go ahead with this plan, about $321 billion in federal student loans would be forgiven.

The amount of student loan forgiveness you receive may depend on your income. Sources say The Washington Post this relief could be limited to those earning less than $125,000 or $150,000 per individual filer or $250,000 or $300,000 for couples filing together. The forgiveness could also be limited to loans used for undergraduate studies, excluding medical and law programs, for example, which require additional schooling.

The Ministry of Education has also confirmed it is “working on new regulations that will permanently improve a variety of existing student loan relief programs, significantly reduce monthly payments, and provide better protection for students and taxpayers from unaffordable debt.”

The student loan payment moratorium, first signed into law by then-President Trump in 2020, has been extended until August.

Alex Gangitano of The Hill contributed to this report.

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