Biden administration forgives $39 billion in student debt for more than 800,000 borrowers PUBLISHED FRI, JUL 14 20237:00 AM EDTUPDATED 29 MIN AGO thumbnail Annie Nova @ANNIEREPORTER WATCH LIVE KEY POINTS The Biden administration announced it would automatically cancel education debt for 804,000 borrowers, for a total of $39 billion in relief. The debt cancellation is a result of the administration’s fixes to repayment plans, which included updated counts of borrowers’ payments.

President Joe Biden announces new actions on June 30, 2023 to protect borrowers after the Supreme Court struck down his student loan forgiveness plan. President Joe Biden announces new actions on June 30, 2023 to protect borrowers after the Supreme Court struck down his student loan forgiveness plan.

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

The relief is a result of fixes to the student loan system’s income-driven repayment plans. Under those repayment plans, borrowers get any remaining debt canceled by the government after they have made payments for 20 years or 25 years, depending on when they borrowed, and their loan and plan type.