What You Need To Know About President Biden’s Next Steps For Student Loans


The Supreme Court’s decision to strike President Biden’s original debt relief plan was difficult news for many borrowers. However, the Biden Administration continues to move forward with providing student loan forgiveness within its authority. 


On Friday, July 14th, Biden announced new debt relief actions to discharge $39 billion in student loans

Who is Covered by This New Initiative?

This initiative in student loan forgiveness provides relief for borrowers with income-driven repayment (IDR) plans, those in the public service loan forgiveness program (PSLF), and those with direct or federal family education loans held by the Department of Education. 

Over 800,000 borrowers are eligible for student loan relief through this new plan. Following Biden’s announcement on Friday, the Department of Education started notifying borrowers who qualify for aid. 

Requirements For Forgiveness

Not all borrowers enrolled in one of the programs Biden’s initiative targets will receive immediate debt relief. 


You are eligible for student loan forgiveness if you have made payments equivalent to 20 to 25 years, depending on your loan type and program. 


Determining if you qualify for forgiveness can be done by adding up your monthly payments. Depending on your program, you qualify if you have paid over 240 or 300 months


The Department of Education should notify you if you qualify. They will continue notifying those who reach the number of required payments for debt discharge every two months until next year

What is The Legality of This Initiative?

This new program directly impacts borrowers who have been in repayment for years. In April 2022, the Biden Administration announced a payment count adjustment addressing inaccuracies that affected forgiveness under IDR plans. 


Biden’s previous student loan forgiveness plan rested on a lack of authorization from Congress to cancel large amounts of student loans. 


However, Congress established a program that granted loan forgiveness authorization in relation to IDR plans in the 1990s. Thus, Biden’s new initiative predates the Supreme Court’s ruling. 

How Will Forgiveness Be Implemented?

For those that are eligible for student debt relief under this plan, their remaining balances on their student loans will be discharged. 


Discharges begin 30 days after the Department of Education sends emails. Your loan servicer will notify you after the debt has been discharged. 


While waiting for your loan debt to be discharged, repayment on your loans will be paused. 

For Those Who Do Not Qualify

As the payment pause comes to an end, if you are not eligible for this new program, there are ways to manage repayment. 


Managing monthly payments on your student loans can be difficult. Depending on your financial situation, borrowers may consider consolidating their loans, applying for deferment or forbearance, or refinancing their student loans


Although the Biden Administration hopes to provide even more student loan forgiveness programs in the future, other options may be good for you. 

Refinancing With Education Loan Finance (ELFI)

If refinancing your student loans suits your needs best, ELFI can help*. With the uncertainty surrounding loan forgiveness, you can get more manageable payments through refinancing. With ELFI, there are a variety of refinancing options to choose from. 

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