26 Million in 50 States Eligible For One-Time Student Debt Relief

New data released showing the number of people in each state who applied for student debt relief or were automatically eligible for relief by the Biden-Harris Administration. These borrowers could be benefiting from the Administration’s program right now were it not for lawsuits brought by elected officials and special interests. The Administration’s program aimed to protect borrowers most at risk of delinquency or default as a result of hardships brought on by COVID-19 pandemic when the payment pause ends, according to the press release. In the less than four weeks that the application was available, 26 million people either applied for debt relief or had already provided sufficient information to the Department of Education (Department) to be deemed eligible for relief. Over 16 million of those borrowers’ applications were fully approved by the Department and sent to loan servicers. However, in November of last year- less than a month after the application was first released- the Department was required to stop accepting applications as a result of lawsuits brought by opponents of the program. Loan servicers were thus prevented from discharging any debt. Allegedly, overall more than 40 million borrowers would qualify for the Biden Administration’s debt relief program. Nearly 90% of the benefits of the relief going out to out-of-school borrowers would go to those earning less than $75,000 per year. Millions of those borrowers could be experiencing the benefits of that relief today- were it not for lawsuits brought on by elected officials in some of their own states. For more information, visit www.StudentAid.gov/debtrelief.