Biden Administration Moves To Grant $39 Billion in Student Loan Breaks

The Biden administration announced Friday that it would move to forgive $39 billion in student debt for around 804,000 borrowers.

The change comes as the Biden administration struggles to advance its agenda of student loan forgiveness after the Supreme Court declared its earlier program was illegal.

The new plan would count more payments toward a longstanding forgiveness program that provides debt relief when borrowers have made student loan payments for 20 or 25 years.

According to the Biden administration, this change is a “fix” to the pre-existing program. The administration says that the program was not including all the payments it should have been, including some late payments or payments paused during certain deferments and forbearances.