Dear Friend,

When I talk to our neighbors, I often hear about how a crushing burden of student debt makes it hard to build a middle-class future for themselves and their families. I am committed to reducing that burden to lower costs for families like yours and I want to provide you with an update on recent developments.

In 2022, President Joe Biden announced a significant effort to cancel student debt for 20 million middle-class and low-income borrowers. Unfortunately, a Supreme Court decision halted President Biden from providing this relief.

Despite this setback, President Biden and Vice President Harris have remained committed to student debt cancellation. According to data from the Department of Education, they have done this through four critical efforts for qualifying borrowers:

StudentAid.gov

• Revamping the federal Public Service Loan Forgiveness (PSLF) program. The Biden-Harris Administration has taken historic action to strengthen the PSLF program and bring $62.5 billion in student debt cancellation to more than 871,000 public servants — including teachers, first responders and firefighters, non-profit workers, and government employees.
  
  
• Cancelling debt for borrowers defrauded by for-profit colleges and universities. Under the Biden-Harris Administration, the Department of Education has provided student debt cancellation for borrowers who were misled by fraudulent for-profit institutions and took out federal student loans to enroll in them. More than 1.3 million of these borrowers have seen a total of $22.5 billion in student loan debt canceled.
  
  
• Cancelling debt for borrowers with disabilities. Under the Biden-Harris Administration, borrowers with a disability can receive student debt cancellation via a Total and Permanent Disability (TPD) discharge application. More than 513,000 Americans with permanent and total disabilities have seen their loans cancelled, amounting to $11.7 billion.
  
  
• Fixing income-driven repayment plans once and for all. The Biden-Harris Administration’s new Saving on a Valuable Education (SAVE) plan is the most generous income-driven repayment (IDR) plan ever. It cuts payments on undergraduate loans in half and for some eligible students, even brings payments down to as low as $0 per month. Some 930,500 borrowers have saved a total of $45.6 billion through adjustments to IDR payments and the SAVE plan.

While opponents have tried to undermine these efforts, President Biden has provided nearly $144 billion in student debt cancellation to four million borrowers. The Biden-Harris Administration is working to provide even more opportunities for student loan cancellation and unscrupulous institutions accountable for pushing borrowers into deeper and more unaffordable debt.

TAKE ADVANTAGE of two options for student debt cancellation – and feel free to share this information with your family, friends, co-workers, and neighbors:

• For more than one million borrowers, income-driven repayments can be as low as $0 per month and the balance of your debt can be cancelled in 20 years – or as few as 10 years for some borrowers who have already been making payments for a decade. Visit StudentAid.gov/IDR for more information.
  
  
• If you have served as a teacher, firefighter, government employee, or any other category of public service for 10 years, you may be eligible for PSLF. Visit StudentAid.gov/PSLF for more information.

Thank you for reading,

Rep. Judy Chu

Member of Congress

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