President Joe Biden launched the student loan forgiveness program in 2022. With this significant initiative, the Biden administration aimed to provide debt relief to low-income and moderate-income borrowers. Currently, it is reported that the Federal Government may soon revive the Biden Student Loan Forgiveness in coming months. If the news comes true, it is expected that over 25 million US citizens might soon receive much-needed debt relief. During the initial program, it is believed that the program provided up to $20,000 as education debt relief. Hence, it is expected that the Biden-Harris administration may come up with similar benefits in 2024.
Biden Student Loan Forgiveness Update
The Biden-Harris administration along with the Department of Education launched the student debt relief program in 2022. By implementing this significant initiative, low-income borrowers were able to get rid of their financial burden caused by college education. After 14 months since the Supreme Court turned down Biden’s Student Loan Forgiveness Program, news regarding another attempt at the same is circulating on various media platforms. Apart from that, before the student loan forgiveness program may receive its final confirmation, it may face legal challenges.
The new program states that it aims to focus importantly on borrowers who are in most need of the relief. As a result, the eligibility requirements may vary as compared to the previous debt relief program. However, certain legal complications such as the Supreme Court’s involvement and lawsuit may delay the program. According to the reports, this Biden Student Loan Forgiveness Program has approved approximately $169 billion for over 4.8 million people. With this, federal government and the Department of Education can provide much-needed loan relief to over 25 million low-income borrowers.
Biden Student Loan Forgiveness Details
| Title | Biden Student Loan Forgiveness |
| Country | The United States |
| Authorized by | Biden-Harris Administration |
| Category | Government aid, Finance |
| Applicable for | Eligible citizens |
| Purpose | To provide relief from education debt |
| Current Status | Rumored |
| Expected beneficiaries | 25 million |
| Year | 2024 |
| Official website | www.ed.gov |
Biden Student Loan Forgiveness Program Legal Challenges
The United States Supreme Court has already rejected the petition to revive the Biden Student Loan Forgiveness Program. Within a week of the Supreme Court’s rejecting the new loan forgiveness program, a lawsuit was filed against the same by seven Republican-led states. The attorneys in the lawsuit stated that the US Department of Education is planning to cancel billions of dollars of student loans. The estimated amount of the debt is said to be around $73 billion.
In the previous year itself, the Supreme Court had also struck down a $430 billion debt relief program. The initial program was set to cancel up to $10,000 to $20,000 in student loans for each borrower. At present, the Biden-Harris administration has already proceeded with the approval of approximately $169 billion. However, the latest challenge for millions of borrowers in the country works as a catalyst in yet another hold on the debt relief program.
Eligibility Criteria for the Biden Student Loan Forgiveness Program
The Department of Education has categorized the eligibility criteria for the Biden Student Loan Forgiveness Program into four categories. Low-income borrowers meeting one of the following requirements are eligible for loan forgiveness:
- Borrowers considered already eligible for one of the government’s loan forgiveness programs are eligible. However, they might not have applied for the program yet.
- If the borrowers owe more amount as compared to during the start of the repayment, the department considers them eligible for the new program.
- Borrowers whose repayment for their undergraduate loans started on or before July 1, 2005. Moreover, if they have a graduate loan on or before July 1, 2000, then in both cases the eligibility applies.
- The US Education Department also considers eligibility for the students from the ‘low-financial value’ programs.
Biden Student Loan Forgiveness Relief Dates
Currently, the exact dates for the initiation of the loan forgiveness program are uncertain. With the legal difficulties, the Biden Student Loan Forgiveness Program may receive its approval in late October 2024. Likewise, eligible borrowers may expect the relief in November or December this year. The Biden-Harris administration may soon make an announcement regarding the same. Borrowers who did not receive the loan forgiveness may also claim the benefits of this new program.
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Raul joined SD News team in 2021, bringing his experience as a editor-cum writer on global financial & trending topics. From a young age, Raul developed a keen interest in Finance, which propelled his to pursue an undergraduate degree in global and international studies. Raul skillfully combines his knowledge of political economy and finance to empower readers with crucial insights.