- After more than a three-year pause, student loan repayment begins in October 2023.
- As a result of ongoing federal student loan repayment and forgiveness programs, an additional $9 billion in student loan debt will be forgiven.
- The majority of the relief, $5.2 billion, will go to Public Service Loan Forgiveness.
On Wednesday, President Biden announced new student loan forgiveness initiatives totaling $9 billion. The announcement comes as millions of borrowers must resume loan payments after a three-year pause.
Borrowers eligible for Public Service Loan Forgiveness will receive $5.2 billion in forgiven loans, and $2.8 billion will apply to income-based repayment plans. Approximately 125,000 borrowers will be eligible for this student loan forgiveness. Learn more about whether you are eligible and what to do to take advantage of this program.
Student Loan Forgiveness for 125,000 Americans
This additional loan forgiveness is a result of ongoing fixes the Department of Education (ED) has made to existing federal student loan repayment and forgiveness programs such as income-driven repayment (IDR) and Public Service Loan Forgiveness (PSLF). It also grants automatic relief for borrowers with total and permanent disabilities.
Here’s a breakdown of how the additional $9 billion of student loan forgiveness will be dispersed:
- PSLF: $5.2 billion across 53,000 borrowers
- IDR: $2.8 billion across 51,000 borrowers
- Relief for borrowers with total and permanent disabilities: $1.2 billion across 22,000 borrowers
The Biden-Harris Administration has made student loan forgiveness a priority. U.S. Secretary of Education Miguel Cardona stated, “For years, millions of eligible borrowers were unable to access the student debt relief they qualified for, but that’s all changed.” This latest student loan forgiveness initiative brings the total forgiven amount to $127 billion in debt relief approved for almost 3.6 million borrowers.
However, another 43 million Americans still have some form of student debt. The total U.S. student debt is $1.76 trillion. The Supreme Court ruled 6-3, along party lines, that the administration’s plan to allow borrowers to cancel up to $20,000 was illegal.
Many nurses and healthcare professionals may be eligible for these student loan forgiveness programs.
Nurses who worked for federal, state, local or tribal governments, or a nonprofit organization for at least 10 years and made at least 120 payments are eligible for Public Service Loan Forgiveness.
Nurses who have made income-driven repayment (IDR) for 20 years or longer may also be eligible for forgiveness. Another $1.2 billion is available for borrowers with a total or permanent disability. Other borrowers may be eligible to have their payments reduced, even if they are not eligible for student loan forgiveness.
For eligibility information, visit StudentAid.gov/SAVE to learn more about student loans and how to resume payments. In addition to these programs, you may be eligible for other forms of student loan forgiveness for nurses. For example, if you agree to work in a medically underserved area or for the military, you may be eligible for total loan forgiveness. If you are not eligible for government loan forgiveness, some employers may provide assistance with repayments.