Kamala Harris Student Debt Relief: What to Know

Imagine you’ve just graduated and are ready to start your life. But, you’re worried about the student debt you have. You’re not alone; millions of Americans face this issue. The Biden-Harris administration is working to help with their debt relief plans.

They’ve made big moves, forgiving nearly $170 billion in student loans and helping about 5 million Americans¹. This is more than just numbers; it’s about changing lives and futures.

Vice President Kamala Harris is leading the charge. She’s focusing on helping public servants like teachers, nurses, firefighters, and social workers. These people often struggle with debt. Thanks to her efforts, over 850,000 public servants have had $70,000 of their loans forgiven².

The administration isn’t stopping there. They’re planning to help 25 million more Americans, including many public servants². This could change the financial lives of a whole generation.

This isn’t just policy; it’s about your future and dreams. It’s about making sure you can live the life you’ve worked for. Let’s look into how these changes could affect you and others across the country.

The Biden-Harris administration has made big steps in helping with student debt. They’ve given relief to millions of Americans with student loans. Let’s dive into how these programs have helped.

The administration has shown strong support for student debt relief. They’ve approved about $138 billion in debt cancellation for nearly 3.9 million borrowers³. This includes $56.7 billion for over 793,000 borrowers through Public Service Loan Forgiveness and $45.6 billion for 930,500 borrowers via enhanced income-driven repayment plans³.

The IDR Account Adjustment and SAVE plan have been key in these efforts. Now, 7.5 million borrowers are in the SAVE plan, with 4.3 million paying $0 each month³. This is important, as most undergrads leave school with nearly $25,000 in debt⁴.

The administration has also expanded several loan forgiveness programs. They’ve given $11.7 billion for 513,000 borrowers with total and permanent disability, including automatic discharges³. Plus, $22.5 billion has been approved for 1.3 million borrowers through closed school discharges, borrower defense, and related court settlements³.

These efforts focus on giving targeted relief. Nearly 90% of the relief goes to those earning less than $75,000 a year⁴. The goal is to help borrowers in the most need, aiming to close the racial wealth gap and promote racial equity.

Vice President Kamala Harris leads efforts to help with student debt. Her plans aim to lighten the load for millions in the U.S. The administration is working to make and improve programs to tackle the student loan crisis.

The PSLF program forgives debt for public servants after 120 payments. Under the current administration, almost 950,000 public workers have gotten debt relief through this program⁵. For example, Tonya Cabeza, a teacher leader, had $40,000 in loans forgiven in May 2023⁶⁷.

Harris’s efforts focus on IDR plans. These plans lower payments based on income and family size. Thanks to these efforts, $146 billion in student debt was cut for 4 million Americans⁵.

The SAVE plan is a new IDR program from the Biden-Harris administration. It offers lower payments and faster forgiveness. So far, it has forgiven $45 million in Pennsylvania, $35 million in New Jersey, and $5.3 million in Delaware⁶. It could help over 30 million borrowers, with about 23 million possibly seeing interest wiped out⁶.

These efforts show the administration’s dedication to solving the student debt crisis. Over $167 billion in debt was forgiven for nearly 5 million borrowers⁵. As the debate on student loan repayment continues, these programs offer relief to millions struggling with debt.

Student debt relief is facing big hurdles. Legal challenges and Republican opposition are major obstacles to the Biden-Harris administration’s plans. Almost a dozen states have sued the administration to stop a student loan forgiveness plan⁸.

The SAVE plan, a key repayment option, is being challenged by Republican state leaders⁸. This plan could forgive up to $20,000 in federal student loans for 43 million Americans. It’s expected to cost about $500 billion⁹.

Conservative policy plans, like Project 2025, aim to end student loan forgiveness programs. They say debt relief could cause more spending and inflation. Consumer prices have gone up by 8.5% in the last year⁹.

Despite these hurdles, the administration keeps pushing forward. The IDR Account Adjustment has helped nearly a million borrowers get their loans discharged⁸. The Biden team is also working on a new plan for student loan forgiveness, expected later this year⁸.

“The fight for student debt relief is far from over. We must keep pushing for fair and accessible education for all Americans.”

As legal battles continue, millions of borrowers wait anxiously. The outcome will greatly affect student debt relief in the U.S.

The Biden-Harris administration introduced the SAVE Plan to change how we handle student loans. This plan makes paying back loans easier for millions of people in the U.S.

The SAVE Plan cuts monthly payments for borrowers. Under it, payments for undergraduate loans go from 10% to 5% of what you can afford¹⁰..

It also offers loan forgiveness. If you pay on time for 10 years and your balance is $12,000 or less, your debt could be wiped out. This helps community college grads a lot, with 85% likely to be debt-free in a decade¹⁰.

Legal issues are slowing down the SAVE Plan. Some states are suing to stop it, affecting over 8 million people. The 8th Circuit Court of Appeals has halted the plan, leaving many in limbo¹¹.

Even with legal issues, the SAVE Plan could still help a lot of people. Over 20 million borrowers could gain from it. On average, borrowers could save about $1,000 a year, with some saving more¹⁰¹².

Black, Hispanic, American Indian, and Alaska Native borrowers could cut their total payments by 50% on average. This plan aims to fix unfairness in how loans are paid back¹⁰.

“The SAVE Plan is a crucial step towards making higher education more accessible and affordable for all Americans.”

Legal fights are ongoing, so the fate of debt relief is uncertain. Yet, the Biden administration is working on a new plan. This shows their dedication to solving the student loan crisis¹¹.

The future of student debt relief is changing, with big political implications for millions. As the 2024 election nears, the fate of these relief efforts is uncertain. If elected, Vice President Kamala Harris plans to keep the current debt relief path. This comes after nearly $144 billion was forgiven for almost four million Americans¹³.

The SAVE Plan is a key part of these efforts, signing up over 7.7 million borrowers. It offers big relief, with 4.5 million getting $0 monthly payments and over a million paying less than $100¹³. Under SAVE, borrowers with a bachelor’s degree could save $20,000, and those with associate degrees nearly 90% compared to standard plans¹⁴.

The election’s impact on debt relief is huge. If Republicans win, they might stop these programs. But the benefits are clear. Cancelling student debt could boost spending by billions yearly, help credit scores, and increase homeownership¹⁴. Yet, the cost is high. The Biden plan to cancel debt for up to 30 million could cost $250 billion to $750 billion¹⁵. Remember, the future of student debt relief will be a big issue in the election, affecting borrowers and the economy.

1. Kamala Harris Touts Student Loan Forgiveness For 5 Million Borrowers, Warns Of Threats To Programs – https://www.forbes.com/sites/adamminsky/2024/07/25/kamala-harris-touts-student-loan-forgiveness-for-5-million-borrowers-warns-of-threats-to-programs/
2. Remarks by Vice President Harris in a Roundtable Discussion on Student Debt Relief | The White House – https://www.whitehouse.gov/briefing-room/statements-releases/2024/04/08/remarks-by-vice-president-harris-in-a-roundtable-discussion-on-student-debt-relief/
3. Biden-Harris Administration Approves $1.2 Billion in Loan Forgiveness for Over 150,000 SAVE Plan Borrowers – https://www.ed.gov/news/press-releases/biden-harris-administration-approves-12-billion-loan-forgiveness-over-150000-save-plan-borrowers
4. FACT SHEET: President Biden Announces Student Loan Relief for Borrowers Who Need It Most | The White House – https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/24/fact-sheet-president-biden-announces-student-loan-relief-for-borrowers-who-need-it-most/
5. What Kamala Harris has said about student loan forgiveness – https://www.newsweek.com/kamala-harris-student-loan-forgiveness-position-1928975
6. VP Kamala Harris rolls out new student debt relief rules in North Philly – https://whyy.org/articles/kamala-harris-philadelphia-visit-student-loan-relief/
7. Kamala Harris pitches student-loan forgiveness to teachers union: ‘A future where no teacher has to struggle with the burden’ – https://www.morningstar.com/news/marketwatch/20240725375/kamala-harris-pitches-student-loan-forgiveness-to-teachers-union-a-future-where-no-teacher-has-to-struggle-with-the-burden
8. Student Loan Forgiveness Update: 5 Key Points About Latest Challenge To Biden Plan – https://www.forbes.com/sites/adamminsky/2024/04/02/student-loan-forgiveness-update-5-key-points-about-latest-challenge-to-biden-plan/
9. The “fairness” debate over student loan forgiveness, explained – https://www.vox.com/policy-and-politics/23322129/student-loan-forgiveness-fair-inflation
10. FACT SHEET: The Biden-Harris Administration Launches the SAVE Plan, the Most Affordable Student Loan Repayment Plan Ever to Lower Monthly Payments for Millions of Borrowers | The White House – https://www.whitehouse.gov/briefing-room/statements-releases/2023/08/22/fact-sheet-the-biden-harris-administration-launches-the-save-plan-the-most-affordable-student-loan-repayment-plan-ever-to-lower-monthly-payments-for-millions-of-borrowers/
11. 5 Big Updates On Student Loan Forgiveness And SAVE Plan As Legal Battles Continue – https://www.forbes.com/sites/adamminsky/2024/08/29/5-big-updates-on-student-loan-forgiveness-and-save-plan-as-legal-battles-continue/
12. Student Loan Forgiveness: What Might Happen Under A Harris-Walz Presidency – https://www.forbes.com/advisor/student-loans/student-loans-forgiveness-under-harris-walz/
13. FACT SHEET: Vice President Kamala Harris, Administration Officials Launch “SAVE Day of Action” to Highlight Cross-Sector Actions to Boost Enrollment in the SAVE Plan – https://www.presidency.ucsb.edu/documents/fact-sheet-vice-president-kamala-harris-administration-officials-launch-save-day-action
14. The Economics of Administration Action on Student Debt | CEA | The White House – https://www.whitehouse.gov/cea/written-materials/2024/04/08/the-economics-of-administration-action-on-student-debt/
15. Student Debt Plan Would Add Hundreds of Billions to Deficit | Committee for a Responsible Federal Budget – https://www.crfb.org/blogs/student-debt-plan-would-add-hundreds-billions-deficit