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Since President Joe Biden took office in January 2021, hundreds of thousands of Americans have wiped out their student loan debt – some of these borrowers reducing their balances to zero.

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While a significant portion of the population has benefited from federal student loan forgiveness, approximately 43 million borrowers still have a total of $1.73 trillion of college loans owed, according to education data initiative, This is an average balance per borrower of $39,351.

Keep reading to find out who is eligible to discharge their student loans. If you are one of the many borrowers who will still pay off student loans, consider your repayment options such as student loan refinance, go to trusted Compare Student Loan Refinance Offers Free from many private lenders without affecting your credit score.

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Who Has Qualified for Student Loan Forgiveness Under Biden?

education Department More than $11.5 billion in student loan relief has been provided to approximately 580,000 borrowers under the Biden administration through the following student loan forgiveness programs:

Learn more about each program in the sections below.

Can an Income-Contingent Repayment (ICR) Plan Help Forgive My Student Loans?

Total and permanent disability discharge

  • Borrowers who qualify: 364,000
  • Total loan waiver: $7.1 billion

Total and Permanent Disability (TPD) Discharge Program Offer student loan relief For borrowers who are completely and permanently disabled.

Qualified borrowers no longer have to repay their federal student loans, which include direct loan program loanFederal Family Education Loan (FFEL) Program Loan and Federal Perkins Loan. They also do not need to meet the Teach Grant service obligation to have their loans forgiven.

Earlier, borrowers had to apply for TPD discharge, but the education department announced in August 2021 That these borrowers would automatically qualify for relief through matching existing data with the Social Security Administration (SSA). This resulted in approximately $5.8 billion in automatic student loan discharges during that time.

Biden administration also reinstates $1.3 billion in TPD discharges in March 2021 For 41,000 borrowers who did not report income as part of the program.

If you have a complete and permanent disability but do not qualify for TPD discharge, you may be able to apply for this program Federal Student Aid (FSA) Website By providing documents from your doctor. And if you still don’t qualify for TPD discharge, visit Credible to compare alternative student loan repayment programs like Refinance. You can do this Browse Estimated Student Loan Rates From private lenders in the table below.

What to do if your student loan service is taking off

closed school holiday

  • Borrowers who qualify: 133,000
  • Total loan waiver: $1.6 billion

Student loan borrowers who attended a school that closed while enrolled or shortly after graduation can have their federal student loans forgiven under closed school holiday program.

Education Department announced in June 2021 That 18,000 borrowers who joined the now-defunct ITT Technical Institute would have $500 million worth of student loans under this program. Then in August 2021, the department provided an additional $1.1 billion in relief to 115,000 borrowers who left ITT on or after March 21, 2008 without completing their degrees.

Biden Administration These changes were made after reviewing the problems leading up to the closure of ITT. The department found that the school was misrepresenting the “true state of its financial health”, allegedly misleading students into taking out private student loans that were portrayed as grants.

U.S. Education Secretary Miguel Cardona said in a statement, “For years, ITT hid its true financial status from borrowers, while luring many of them to private loans with deceptive and ineffective terms, causing borrowers to drop out of school.” could.”

Private student loans are not grants, but they are a viable lending option for select student loan borrowers who have met federal credit limit, You can do this Know more about these loans And compare estimated interest rates on Credible for free.

Refinancing Your Student Loans Can Save You $250+ on Your Monthly Payment

Borrower Defense for Repayment

  • Borrowers who qualify: 92,000
  • Total loan waiver: $1.5 billion

Borrower Defense for Repayment Program available for students who were misled by the school About 7,000 borrowers who engaged in malpractice during enrollment who had a . Received closed school holiday Also eligible for student loan forgiveness under the Borrower’s Defense for Repayment program.

Education Department approves additional 1,800 borrower defense claims in July 2021 For students at Westwood College, the Marinello School of Beauty and the Court Reporting Institute. This resulted in approximately $55.6 million in relief, making Total Borrower Defense Loan Cancellation More than $1.5 billion for 92,000 borrowers under the Biden administration.

The department is currently reviewing future regulations with regard to borrower defence, holding public hearings to obtain feedback in June 2021, You can apply for Borrower Defense FSA website,

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Public Service Loan Waiver

  • Borrowers who qualify: 22,000
  • Total loan waiver: $1.74 billion

NS Public Service Loan Waiver Program (PSLF) provides federal student loan relief as an incentive for borrowers working in a government or non-profit profession. Eligible borrowers can have their remaining federal loan debt discharged after making 120 consecutive qualifying payments.

But the PSLF program has come under criticism due to its extremely low approval rate. 98% of PSLF applications rejected since the start of the programme. The Biden Administration Opens a Public Inquiry into PSLF, Where Borrowers Call the Program “Broken” and “Confusing.”

After review of PSLF, Education Department announced significant changes in the program in October 2021, This limited exemption makes it easier for public servants such as nurses and special education teachers to qualify for the program, as long as they transfer their federal loans to a direct consolidation loan by October 31, 2022.

This policy resulted in 22,000 borrowers become eligible immediately For a loan waiver of $1.74 billion. An additional 27,000 borrowers will need to verify their employment to qualify for $2.82 billion in student loan relief.

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The department estimates that more than 550,000 borrowers will Because of these actions, on an average, it has been close to two years of debt redemption under PSLF. In addition, borrowers who were Denied PSLF earlier are entitled to review their cases.

To meet PSLF eligibility requirements, borrowers must be working for a non-profit organization or a qualified employer in a federal, state, local or tribal government setting. you can use PSLF Assistance Tool To see if you are eligible. If you do not qualify for PSLF, you may be able to repay your student loan debt on better terms by refinancing.

keep in mind that refinancing your federal loans In a private student loan you will be ineligible for PSLF in future. You can do this Learn more about student loan refinancing By contacting a knowledgeable credit officer at Credible.

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