(NEXSTAR) – Although widespread student loan forgiveness has not yet become a reality, some borrowers in the United States have already received some debt relief. Approximately 1.3 million borrowers have received $ 25 billion in student debt forgiveness since President Biden took office.
On Wednesday, the Ministry of Education announced it would repay unpaid federal student loans to former Corinthian college students after the school faced numerous investigations and was accused of defrauding millions of students with federal loans. A total of $ 5.8 billion in loans will be canceled for 560,000 borrowers, making it the largest single loan granted by the Ministry of Education.
This is the second group release of student loans from the Biden administration. The first was in April, when loans were approved for former students at the Marinello beauty schools.
Here is a breakdown of student debt cancellation that has already been approved by the Biden administration.
Borrowers cheated by their school
According to the education department, approximately 690,000 borrowers had a total of $ 7.9 billion in student loans canceled by dropping out to protect borrowers and closing schools, such as the group dropout of Corinthian college students.
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In April, the department announced the release of $ 238 million in student loans to 28,000 borrowers who attended Marinello beauty schools between 2009 and its closure in February 2016. During those seven years, the school was accused of harming those borrowers with “widespread and widespread misconduct.”
Other debt relief debtors after being defrauded by their school include former DeVry University students, the ITT Institute’s Nursing Program, Westwood College, and the Minnesota / Globe School of Business’s criminal justice programs. University.
Borrowers with complete and permanent disability
More than 400,000 borrowers have received more than $ 8.5 billion in debt forgiveness through full and permanent discharges from the Biden administration.
In August, more than 323,000 borrowers received more than $ 5.8 billion in automatic student loan disbursements under a new regulation from the Ministry of Education. Employees used existing data from the Social Security Administration to identify eligible borrowers.
By comparing the data, Federal Student Aid Chief Operating Officer Richard Cordry said in April that approximately 15,000 to 20,000 new borrowers would be repaid on a quarterly basis.
PSLF relief
In total, more than 113,000 borrowers have received $ 6.8 billion in debt cancellation “through improvements to the PSLF (Public Service Loan Forgiveness)” under the Biden administration, according to the education department.
Last October, a major overhaul of the PSLF program was expected to bring 22,000 borrowers on consolidated loans to receive immediate $ 1.74 billion in forgiveness without further action. At the same time, the Ministry of Education said another 27,000 borrowers could qualify for a $ 2.82 billion forgiveness if they could “certify additional periods of work.”
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By the end of 2021, the Biden administration said more than 70,000 borrowers had managed to qualify for nearly $ 5 billion in federal student loan forgiveness due to changes in the PSLF program.
In April, the Biden administration announced new actions by the Ministry of Education to “fix long-standing failures in student loan programs.” Approximately 40,000 borrowers are eligible for “immediate debt cancellation” as they are now eligible for PSLF under the new changes.
How about the widespread forgiveness of student loans?
The White House said it was approaching a decision to forgive student loan debt extensively, focusing on canceling $ 10,000 per borrower, but did not say the decision was finalized. President Biden has already confirmed that he “does not consider reducing the debt by $ 50,000.”
The Federal Reserve’s analysis found that forgiving $ 10,000 per borrower would eliminate the entire balance of approximately 11.8 million borrowers – just over 31%. If the Biden administration moves forward on this plan, about $ 321 billion in federal student loans will be forgiven.
How much student loan forgiveness you get may depend on how much you do. Sources told The Washington Post that the relief could be limited to those earning less than $ 125,000 or $ 150,000 for individual taxpayers, or $ 250,000 or $ 300,000 for couples filing together. Forgiveness may also be limited to loans used for undergraduate education, with the exception of medical and law programs, for example, which require additional education.
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The education department also confirmed that “it is working on new regulations that will permanently improve the diversity of existing student loan facilitation programs, significantly reduce monthly payments and provide greater protection for students and taxpayers against unbearable debts.”
The moratorium on student loans, first introduced by then-President Trump in 2020, has been extended until August.
Alex Gangitano of The Hill contributed to this report.
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