As President Joe Biden addressed the nation in his final State of the Union speech for his first term, he reaffirmed his commitment to providing additional relief to federal student loan borrowers. However, many borrowers are still awaiting the promised relief and wondering about the status of these efforts.

The Promise of Relief

During his presidential campaign, Biden pledged to cancel $10,000 in student debt per borrower and reform repayment programs like Public Service Loan Forgiveness (PSLF). Despite initial attempts to fulfill this promise, challenges have hindered the delivery of broad relief to borrowers.

Hurdles Along the Way

In August 2022, Biden announced a plan to provide up to $20,000 in debt cancellation for borrowers earning under $125,000 annually. However, this plan faced legal challenges, culminating in a Supreme Court ruling in June 2023 that halted its implementation.

Current Relief Efforts

While broader relief remains in limbo, Biden’s administration has implemented targeted measures to alleviate student debt burdens. Approximately $138 billion in student debt has been canceled for about 3.9 million borrowers. These cancellations include adjustments for borrowers in PSLF and income-driven repayment plans, as well as debt relief for students defrauded by certain for-profit institutions.

Regulatory Reforms

In addition to targeted relief, the Education Department has introduced regulatory reforms to protect student interests. Reinstating the gainful employment rule, which prevents schools from burdening students with excessive debt, is one such measure. The department has also enhanced financial transparency by providing students with upfront information on degree costs and expected debt.

Introduction of New Repayment Plans

Biden’s administration introduced the SAVE plan, a new income-driven repayment option, aimed at reducing monthly payments for borrowers. This plan includes provisions for loan forgiveness for borrowers with low initial balances and a history of timely payments. The department has already begun implementing some aspects of this plan, providing relief to thousands of borrowers.

Prospects for Broader Relief

The Education Department is pursuing a second attempt at broader student-debt cancellation through negotiated rulemaking under the Higher Education Act. However, the timeline for implementation remains uncertain, and legal challenges are anticipated. As negotiations continue, borrowers may face a prolonged wait for relief.

While Biden has made strides in addressing student debt, the road to comprehensive relief is fraught with obstacles. As borrowers await further developments, the prospect of significant debt relief remains uncertain in the near term.