Student Loan Forgiveness Update: Biden Administration Cancels Debt for Another 160,000 Borrowers

One out of 10 borrowers with federal student loans has received some form of student debt relief.

Why You Can Trust CNET Money
Our mission is to help you make informed financial decisions, and we hold ourselves to strict . This post may contain links to products from our partners, which may earn us a commission. Here’s a more detailed explanation of .
Daniel Steinle/Bloomberg via Getty Images

On Wednesday, the White House approved $7.7 billion in debt cancellation for more than 160,000 borrowers. This debt relief was tied to forgiveness programs, such as Public Service Loan Forgiveness, Saving on a Valuable Education and income-driven repayment plans.

This brings the Biden administration’s total student loan cancellation amounts to $167 billion across approximately 4.75 million borrowers.

“One out of every 10 federal student loan borrowers approved for debt relief means one out of every 10 borrowers now has financial breathing room and a burden lifted,” said Miguel Cardona, the US Secretary of Education, a press release.

This news comes during a processing pause for borrowers enrolled in certain forgiveness programs like the PSLF. The Department of Education has paused the processing of PSLF and TEACH applications while borrower accounts are moved from loan servicer Mohela to the Department of Education’s loan servicing platform on Payment counts are also being adjusted for all borrowers with qualifying federal loans, including those who recently consolidated their student loans.

If you have federal loans, you may be eligible for debt cancellation under the Biden administration’s latest debt relief plan, an income-driven repayment plan, or another program. The Department of Education is reassessing payment counts now through Sept. 1 to determine if you’re eligible for debt relief.

Not all federal loans are eligible for debt relief. If you hold a Perkins, Parent Plus, HEAL or commercially held FFEL loan, you now have until June 30 to consolidate your loans into a new Direct Loan with debt forgiveness benefits. Consolidating your loans may also help you receive forgiveness sooner if you have Direct Loans and have been paying for 20 to 25 years. You can learn more about loan consolidation and apply now at

Courtney Johnston is a senior editor leading the CNET Money team. Passionate about financial literacy and inclusion, she has a decade of experience as a freelance journalist covering policy, financial news, real estate and investing. A New Jersey native, she graduated with an M.A. in English Literature and Professional Writing from the University of Indianapolis, where she also worked as a graduate writing instructor.
Advertiser Disclosure

CNET editors independently choose every product and service we cover. Though we can’t review every available financial company or offer, we strive to make comprehensive, rigorous comparisons in order to highlight the best of them. For many of these products and services, we earn a commission. The compensation we receive may impact how products and links appear on our site.

Editorial Guidelines

Writers and editors and produce editorial content with the objective to provide accurate and unbiased information. A separate team is responsible for placing paid links and advertisements, creating a firewall between our affiliate partners and our editorial team. Our editorial team does not receive direct compensation from advertisers.

How we make money

CNET Money is an advertising-supported publisher and comparison service. We’re compensated in exchange for placement of sponsored products and services, or when you click on certain links posted on our site. Therefore, this compensation may impact where and in what order affiliate links appear within advertising units. While we strive to provide a wide range of products and services, CNET Money does not include information about every financial or credit product or service.