Ibrahim Gardner
President Joe Biden's administration has approved student loan forgiveness totaling $188.8 billion for 5.3 million borrowers. This includes targeted loan forgiveness for borrowers with disabilities, public servants, and those who were defrauded by their institutions. The Biden administration has also introduced initiatives to simplify and improve federal student loan repayment options, such as the Fresh Start program and the Joint Consolidation Loan Separation Act. However, there has been criticism of the administration's handling of student loan debt, with some arguing that it has not addressed the core issue of the high cost of education. The Supreme Court also struck down Biden's student debt cancellation plan.
| Characteristics | Values |
|---|---|
| Total student loan forgiveness | $188.8 billion |
| Number of borrowers | 5.3 million |
| Date of student loan forgiveness announcement | April 2022 |
| Date of student loan payment resumption | October 2023 |
| Number of borrowers reminded of their legal obligation to repay their loans | 23 million+ |
| Amount received in collections on defaulted federal student loans | $282 million+ |
| Number of borrowers who have not made a monthly payment in over 360 days | 5 million+ |
| Number of borrowers in late-stage delinquency | 4 million |
| Number of borrowers in an interest-free forbearance or deferment | Not specified |
| Number of borrowers enrolled in the SAVE Plan | 7.7 million |
| Number of borrowers who have not been able to begin repayment due to a processing pause | 1.9 million |
| Number of borrowers who have been provided with clear information about their payment options | Not specified |
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What You'll Learn
Student loan forgiveness
The Biden administration's efforts towards student loan forgiveness have been met with both praise and criticism. Supporters argue that the administration has taken bold action to address a broken student loan system, providing financial relief to hardworking Americans, including public servants, borrowers with disabilities, and those who have been defrauded by their institutions. Betsy Mayotte, president and founder of The Institute of Student Loan Advisors, has commended the administration's efforts, stating that President Biden has done more for vulnerable student borrower populations than any other administration.
On the other hand, critics argue that the administration has not addressed the core problem of the high cost of education, which prompted public pressure for forgiveness in the first place. Additionally, there has been legal pushback against the administration's student loan forgiveness efforts. The Supreme Court struck down President Biden's student debt cancellation plan, and the Trump administration has criticized the Biden administration's handling of student loan repayment, accusing them of trying to illegally force taxpayers to foot the bill for loan forgiveness.
Despite these challenges, the Biden administration has continued to work towards providing relief to student loan borrowers. The administration's "Plan B" for broad student debt cancellation did not come to fruition, but existing federal student loan forgiveness programs remain in place, and the administration has made progress in processing applications for income-driven repayment plans. As of January 2025, the Biden administration's student loan forgiveness tally included significant amounts forgiven through income-driven repayment, borrower defense or closed school discharges, and disability discharges.
In summary, the Biden administration has made significant strides towards student loan forgiveness, providing financial breathing room to millions of borrowers. While facing legal and political obstacles, the administration has remained committed to addressing the challenges of a complex student loan system and ensuring that borrowers have access to relief and simplified repayment options.
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IDR account adjustments
The Biden administration has approved a total of $188.8 billion in student loan forgiveness for 5.3 million borrowers. The Income-Driven Repayment (IDR) Account Adjustment has been a significant part of this, moving millions of borrowers closer to loan cancellation. The IDR account adjustment is a one-time program where the Education Department reviews and adjusts borrower accounts, crediting eligible payments and correcting payment counts. This process started in the spring of 2023 and was completed on January 16, 2025, according to the Education Department.
The IDR account adjustment primarily benefits borrowers under the Public Service Loan Forgiveness (PSLF) and IDR plans. PSLF borrowers with older loans and longtime borrowers who did not qualify for PSLF were among the first to benefit from this adjustment. As of January 16, 2025, approximately 1.45 million borrowers received forgiveness for a total of $57.1 billion in student loans, translating to an average of about $39,380 in forgiveness per person.
It is important to note that not all time periods will count toward the payment count adjustment. Excluded periods include time in default before the COVID-19 payment pause, in-school deferments, most grace periods after leaving school, and months where loans were subject to a court judgment. Additionally, loan types eligible for the IDR account adjustment include Direct Loans, FFEL or Perkins loans owned by the Department of Education, and Parent PLUS loans. However, some loan types, such as commercially-held FFEL loans, school-held Perkins Loans, and Health Education Assistance Loans (HEAL), are not eligible unless consolidated into a new Direct Consolidation Loan before June 30, 2024.
For borrowers with loans held by the Department of Education, no additional steps are required to receive credit under the payment count adjustment. However, for those who still need more time to qualify for forgiveness, enrolling in an IDR plan is necessary to continue earning credit. This is especially relevant for Parent PLUS borrowers, as these loans typically require consolidation first to be eligible for IDR loan forgiveness.
The Department of Education is working diligently to review all borrowers' loans for the IDR account adjustment. However, the process may extend well into 2024. Borrowers who believe their loans should be forgiven before repayment starts again in September can contact their loan servicer or file a complaint with the FSA Ombudsman. Additionally, borrowers can now access new payment trackers in their studentaid.gov accounts to monitor their updated IDR payment counts.
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SAVE repayment plan
The SAVE repayment plan was announced by the Biden administration in June 2024 as a renewed effort to implement student loan bailouts. However, the SAVE plan was deemed unlawful by a federal court in February 2025. The plan was blocked, and borrowers' federal student loans were placed in forbearance with a 0% interest rate.
The U.S. Department of Education has been working to improve federal student loan repayment options and address the unlawful aspects of the SAVE plan. The Department urges borrowers in the SAVE plan to transition to a legally compliant repayment plan, such as the Income-Based Repayment Plan. It is important to note that borrowers in the SAVE plan cannot access loan benefits or make progress toward loan discharge programs.
The Department has made progress in processing Income-Driven Repayment (IDR) applications, and borrowers switching from the SAVE plan to another IDR plan can expect timely processing. The Department has also resumed collections on defaulted federal student loans and reminded borrowers of their legal obligation to repay their loans.
As of the latest updates in 2025, the Department is instructing loan servicers to begin charging interest on impacted loans starting on August 1, 2025. This means that borrowers in the SAVE plan will see their loan balances grow when interest starts accruing. When the SAVE plan forbearance ends, borrowers will be responsible for making monthly payments that include accrued interest and their principal amounts.
To help borrowers understand their options, the Department encourages the use of the Loan Simulator to estimate monthly payments, determine repayment eligibility, and identify the best repayment plan for their needs.
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Student loan cancellation
The Biden administration has approved $188.8 billion in student loan forgiveness for 5.3 million borrowers. This includes $136.6 billion for over 3.7 million borrowers under existing federal student loan forgiveness programs. The administration has also unveiled an income-driven repayment (IDR) account adjustment to make it easier for borrowers to qualify for loan forgiveness, helped defrauded borrowers get refunds from closed colleges, and granted relief to disabled borrowers. A new IDR plan, called SAVE, could halve monthly payments for millions of borrowers and lead to loan forgiveness.
The Biden administration has also extended payment forbearance and targeted loan relief, although the Supreme Court struck down the student debt cancellation plan. The Fresh Start program, announced in April 2022, allows borrowers who defaulted on their federal student loans before the payment pause to get them back into good standing. In October 2022, Biden signed the Joint Consolidation Loan Separation Act, which will allow borrowers who previously consolidated their student loans with a spouse to separate them and access loan forgiveness programs.
Despite these efforts, critics argue that Biden has not addressed the core problem of the high cost of education. Additionally, there are concerns about the impact of loan forgiveness on taxpayers. The Trump administration has criticized Biden's 'loan forgiveness' promises, arguing that federal courts ruled these actions as unlawful and that their focus has been on strengthening the student loan portfolio and simplifying repayment.
As of January 2025, the Biden administration's student loan forgiveness tally included $56.5 billion for more than 1.4 million borrowers through income-driven repayment, including the SAVE plan and the IDR waiver. The administration also wrapped up its IDR waiver program in mid-January, providing forgiveness for longtime borrowers and moving others closer to IDR forgiveness.
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Student loan repayment options
The Biden administration has approved a total of $188.8 billion in student loan forgiveness for 5.3 million borrowers since taking office. The administration has also made efforts to improve federal student loan repayment options and address illegal actions. The U.S. Department of Education is taking steps to bring fiscal responsibility to the federal student loan portfolio, including restarting interest accrual for borrowers with loans in the illegal SAVE Plan.
The Department has been working through a backlog of submitted IDR (income-driven repayment) applications due to a processing pause implemented by the Biden Administration. Borrowers switching from the SAVE Plan to another IDR plan can expect faster and more timely processing. The Department has also resumed collections on federal student loans, reminding borrowers of their legal obligation to repay their loans and the benefits of making regular payments.
Several of the U.S. Department of Education's student loan repayment plans have recently changed, and more new rules are expected in the future. Plans that previously concluded with student loan forgiveness no longer do, and repayment timelines are lengthening for some borrowers. The Education Department has provided descriptions of these changes on its website.
The Income-Contingent Repayment plan (ICR) and the Pay as You Earn plan (PAYE) no longer result in loan forgiveness, and experts advise borrowers to avoid these plans. Starting on July 1, 2026, a new option called the Repayment Assistance Plan (RAP) will be available. RAP is an IDR plan that calculates bills based on adjusted gross income (AGI), with larger payments required for higher earners. RAP leads to student loan forgiveness after 30 years, compared to the typical 20- to 25-year timeline on other IDR plans.
Borrowers who were enrolled in the SAVE Plan were placed in forbearance due to legal challenges. While remaining in forbearance is an option, interest will continue to accrue. For those seeking affordable repayment options, experts recommend the Income-Based Repayment plan (IBR). The current Standard Repayment Plan allows borrowers to divide their debt into fixed payments over 10 years, often the fastest route to paying off student debt compared to IDR plans.
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Frequently asked questions
Biden's Education Department has forgiven $136.6 billion worth of student debt for more than 3.7 million borrowers under existing federal student loan forgiveness programs. As of January 14, 2025, that forgiveness tally included $56.5 billion for more than 1.4 million borrowers through income-driven repayment, including the SAVE plan and the IDR waiver.
The SAVE plan is a new IDR plan that could halve monthly payments for millions of borrowers and lead to loan forgiveness.
Announced in April 2022, the Fresh Start program allows borrowers who defaulted on their federal student loans prior to the payment pause to get them back into good standing.
Federal student loan payments resumed in October 2023 after more than three years on hold. The Supreme Court struck down Biden's student debt cancellation plan. However, Biden's Education Department has forgiven billions of dollars in student debt under existing federal student loan forgiveness programs.
