FILE - Education Secretary Miguel Cardona testifies during a Senate Appropriations Subcommittee on Labor, Health and Human Services, and Education, and Related Agencies hearing on Capitol Hill in Washington, April 30, 2024. The Biden administration is cancelling student loans for another 160,000 borrowers through a combination of existing programs.
The latest relief will go to borrowers in three categories who hit certain milestones that make them eligible for cancellation. It will go to 54,000 borrowers who are enrolled in Biden's new income-driven repayment plan, along with 39,000 enrolled in earlier income-driven plans, and about 67,000 who are eligible through the Public Service Loan Forgiveness program.
A separate action by the Biden administration aimed to correct previous mistakes that delayed cancellation for some borrowers enrolled in other repayment plans and through Public Service Loan Forgiveness, which forgives loans for people who make 10 years of payments while working in public service jobs.According to the Education Department, 1 in 10 federal student loan borrowers has now been approved for some form of loan relief.