Lori Meadows
The Biden administration has approved $188.8 billion in student loan forgiveness for 5.3 million borrowers, with $183.6 billion forgiven during Biden's time in the White House. This was achieved through the SAVE Plan, which placed federal student loans in forbearance with a 0% interest rate, and the IDR waiver program, which forgave debt for longtime borrowers. However, the SAVE Plan has been deemed unlawful, and the Biden administration has been accused of misleading borrowers and putting taxpayers on the hook for irresponsible lending. The Trump administration is unlikely to continue Biden's legacy of student loan forgiveness, but borrowers still have relief options, including existing federal student loan forgiveness programs.
| Characteristics | Values |
|---|---|
| Total amount forgiven by Biden administration | $183.6 billion or $188.8 billion |
| Number of people who benefitted from the forgiveness | 5 million |
| Biden administration's one-time student loan forgiveness program | IDR waiver program |
| Other federal student loan forgiveness programs | Public Service Loan Forgiveness (PSLF), Income-Driven Repayment (IDR) |
| SAVE Plan | A plan to implement illegal student loan bailouts on taxpayers |
| Number of borrowers enrolled in the SAVE Plan | 7.7 million |
| Status of the SAVE Plan | Blocked by a federal court in June 2024 and deemed unlawful by the Eighth Circuit Court of Appeals in February 2025 |
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What You'll Learn
Student loan forgiveness programs
The Biden administration has approved a significant amount of student loan forgiveness, totalling $188.8 billion for 5.3 million borrowers. This includes new approvals for student loan debt forgiveness for over 150,000 borrowers through borrower defence, Public Service Loan Forgiveness (PSLF), and total and permanent disability discharges. Additionally, the administration announced $4.5 billion in student loan forgiveness approvals for 261,000 borrowers who attended Ashford University.
The Biden administration has also addressed illegal actions regarding federal student loan repayment options. The administration's SAVE Plan, which aimed to provide interest-free forbearance for borrowers, was blocked by federal courts as it unlawfully shifted the burden of loan repayment to taxpayers. The Department of Education is working to improve legal repayment options, such as Income-Driven Repayment (IDR) plans, and encouraging borrowers to use tools like the Loan Simulator to estimate monthly payments and determine the best repayment strategy.
While the Biden administration has faced criticism for its handling of student loan forgiveness and repayment plans, it continues to make efforts to provide financial relief to borrowers. The administration has corrected eligible payment counts on borrowers' accounts and taken action on behalf of borrowers cheated by their institutions. These steps aim to simplify repayment processes and bring financial breathing room to borrowers.
To benefit from student loan forgiveness programs, borrowers can explore options such as Public Service Loan Forgiveness (PSLF) and total and permanent disability discharges. They can also consider income-driven repayment plans, which offer flexible repayment terms based on income. Additionally, borrowers who attended fraudulent or misleading institutions may qualify for relief through borrower defence options. It is important for borrowers to stay informed about their rights and explore the available repayment and forgiveness programs to make informed decisions regarding their student loan obligations.
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Income-driven repayment plans
Income-driven repayment (IDR) plans are designed to help student loan borrowers manage their loan repayments when they have a low income. Under IDR plans, repayments are set as a fraction of discretionary income, rather than a fixed amount. This means that borrowers only make payments when they can afford to do so, based on their income.
IDR plans have been a topic of litigation, with the Biden administration's newest IDR plan being deemed unlawful by federal courts. This has resulted in legal uncertainty for borrowers, with existing IDR plans potentially being closed to new borrowers and replaced with a new program, the Repayment Assistance Plan (RAP).
RAP differs from existing IDR plans in that it requires a minimum monthly payment of $10, regardless of a borrower's income. This minimum payment has been a topic of discussion, with some arguing that it encourages responsible borrowing and timely repayment, while others highlight the potential financial hardship it may cause for some borrowers.
The implementation of RAP would result in varying repayment amounts for borrowers. Some may experience higher monthly or lifetime payments, while others may benefit from lower payments. It is important to note that borrowers who only make the minimum payment under RAP may take a long time to reduce their loan balance, which could deter some borrowers from selecting this repayment plan.
Overall, while IDR plans are currently in a state of flux due to legal challenges, the potential implementation of RAP highlights the focus on encouraging timely repayment and borrower engagement with the repayment system.
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Student loan repayment options
The US Department of Education is taking steps to improve federal student loan repayment options. Borrowers in the SAVE Plan will see their loan balances increase when interest starts accruing. They will be responsible for making monthly payments that include accrued interest and principal amounts. The Department encourages borrowers with loans in the SAVE Plan to use the Loan Simulator to estimate monthly payments under available repayment plans, determine repayment eligibility, and identify the option that best meets their repayment goals.
The Trump Administration is supporting borrowers in selecting a new, legal repayment plan that aligns with their financial goals and protects taxpayers. The Department will provide outreach to borrowers enrolled in the SAVE Plan, offering instructions on transitioning to a legal repayment plan.
The Biden Administration's SAVE Plan has faced legal challenges, with federal courts ruling against its loan forgiveness and zero per cent "litigation forbearance" policies. As a result, borrowers in the SAVE Plan are encouraged to transition to compliant repayment plans, such as the Income-Based Repayment Plan.
Borrowers who previously submitted an IDR application and selected the Income-Based Repayment, Pay As You Earn (PAYE), or Income-Contingent Repayment (ICR) Plan do not need to submit a new application. Detailed information about court actions related to Income-Driven Repayment (IDR) plans is available at StudentAid.gov/courtactions.
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Student loan debt relief approvals
The Biden-Harris Administration has approved student loan debt relief for millions of borrowers. This includes $4.5 billion in student loan forgiveness for 60,000 public service workers, including teachers, nurses, social workers, veterans, and other public servants. This builds on the $74 billion in loan forgiveness for over one million public servants through the Public Service Loan Forgiveness (PSLF) Program.
The Biden Administration has also approved $56.5 billion for more than 1.4 million borrowers through Income-Driven Repayment (IDR) plans, including the Saving on Valuable Education (SAVE) plan. The SAVE Plan was announced in 2024 and placed federal student loans into forbearance with a zero percent interest rate. However, the SAVE Plan was later deemed unlawful by a federal court, and interest began accruing on August 1, 2025.
The Biden Administration has also approved student loan forgiveness for borrowers who were enrolled in schools that closed under "exceptional circumstances." These borrowers may qualify for a closed school discharge if they were enrolled more than 120 days before the school's closure. Additionally, the administration has approved forgiveness for borrowers who attended Ashford University, with $4.5 billion in student loan forgiveness for 261,000 borrowers.
Overall, the Biden Administration has approved a total of $188.8 billion in student loan forgiveness for 5.3 million borrowers since taking office. This includes forgiveness for borrowers with disabilities and those who were cheated by their institutions. The administration has also made efforts to simplify repayment options and protect borrowers from career programs that lead to unaffordable debts.
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Student loan bailouts
The Biden administration has approved a total of $188.8 billion in student loan forgiveness for 5.3 million borrowers. This includes $183.6 billion in student loans forgiven for five million people. The administration has also wrapped up its IDR waiver program, which forgave the debt of longtime borrowers and moved other borrowers closer to IDR forgiveness. The Biden administration's student loan forgiveness has been criticised by the Trump administration, which has called it an "illegal bailout".
The Biden administration has also been criticised for misleading borrowers, with some arguing that the executive branch does not have the constitutional authority to forgive debt. The Biden administration's refusal to lift the collections pause and allow borrowers to return to repayment has also been criticised.
Despite these criticisms, the Biden administration has defended its actions by arguing that it is fixing a broken student loan system. The administration has also emphasised that it is helping borrowers who have been cheated by their institutions and providing financial breathing room to hardworking Americans, including public servants and borrowers with disabilities.
While the Biden administration has made progress in providing student loan debt relief, it is important to note that there are still millions of borrowers who have not received forgiveness and are struggling to repay their loans. As of late June, the Department of Education received nearly $282 million in collections on defaulted federal student loans. The Department has resumed collections on defaulted loans and is urging borrowers to return to repayment through a comprehensive communications and outreach campaign.
Borrowers who are struggling to repay their student loans can consider existing federal student loan forgiveness programs, such as Public Service Loan Forgiveness (PSLF) and Income-Driven Repayment (IDR) forgiveness. These programs are still available under the Trump administration and can provide relief for longtime borrowers or those in certain professions, such as teachers, nurses, government employees, and other public service workers.
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Frequently asked questions
Biden forgave $183.6 billion in student loans for five million people while in office.
The SAVE Plan is a Biden Administration effort to implement student loan bailouts. It was blocked by a federal court in June 2024 and ruled unlawful in February 2025.
The IDR plan is an Income-Driven Repayment plan. It is a federal student loan forgiveness program that helps longtime borrowers or those in certain professions, like teachers, nurses, government employees, and other public service workers.
The Biden Administration has resumed collections on defaulted federal student loans and is encouraging borrowers to use the Loan Simulator to estimate monthly payments under available repayment plans.
