In a recent announcement, the Department of Education confirmed that it has authorized the cancellation of nearly $5 billion in federal student loan debt. This brings the total amount of student debt relief provided under the Biden administration to an impressive $132 billion, benefiting more than 3.6 million borrowers.

Despite the setback of the Supreme Court striking down President Joe Biden's signature student loan forgiveness program, the administration has remained committed to finding alternative ways to alleviate the burden of student loans on borrowers.

"We are continuing to pursue an alternative path to deliver student debt relief to as many borrowers as possible as quickly as possible," stated President Biden in a release on Wednesday.

The cancellations have been made through existing federal student loan forgiveness programs, which have specific eligibility criteria. These programs are available to borrowers such as public-sector workers, individuals who have been defrauded by for-profit colleges, and those who have made at least 20 years of qualifying payments in an income-driven repayment program.

Under the latest announcement, eligible borrowers fall into two categories: those who qualify under the Public Service Loan Forgiveness program, which erases remaining student loan debt after public-sector workers make 10 years' worth of monthly payments, and those who have made at least 20 years of qualifying payments but lacked credit for all their student loan payments in the past.

The majority of these borrowers were notified in November about the upcoming cancellation of their outstanding federal student loan debt, and they are expected to observe the changes reflected in their accounts in the coming weeks.

Since taking office, the Biden administration has granted more student loan forgiveness than any other administration, primarily due to efforts to temporarily expand certain debt relief programs and correct past administrative errors in borrowers' accounts.

Education Secretary Miguel Cardona emphasized the administration's dedication to fixing the broken student loan system, stating, "The latest discharges are a result of this administration's relentless efforts to fix our country's broken student loan system and get hard-earned debt relief into the hands of eligible borrowers."

One significant factor contributing to debt relief is a one-time recount of borrowers' past payments. This effort, initiated by the Biden administration in April 2022, rectifies previous administrative failures to accurately track borrowers' payments, which has historically presented a challenge for the Department of Education.

However, the account adjustments have faced criticism, with some Republican lawmakers and conservative groups arguing that the administration lacks the authority to recount payments. This has led to a lawsuit filed against the Department of Education by the New Civil Liberties Alliance on behalf of conservative groups such as the Cato Institute and the Mackinac Center for Public Policy.

In addition to debt cancellation, the Biden administration has implemented measures to reduce borrowers' monthly payments as repayment obligations resume. The newly introduced SAVE (Saving on a Valuable Education) repayment plan, launched this summer, offers more favorable terms and is expected to provide smaller monthly payments for lower-income borrowers.

Furthermore, the Department of Education has instituted a 12-month on-ramp period until September 2024. During this temporary reprieve, borrowers facing difficulties in making their monthly payments are safeguarded from severe consequences, such as negative credit reporting. However, concerns have been raised by some Democratic lawmakers regarding potential implementation errors during this on-ramp period.

Looking ahead, the Biden administration aims to create another one-time student loan forgiveness program. This time, they are pursuing a different legal approach, utilizing a formal rulemaking process known as "negotiated rulemaking." This process is anticipated to take several months, with a proposed rule expected to be released next year, potentially followed by legal challenges.

As the Biden administration continues its efforts to address the student loan crisis, the provision of debt relief through existing programs remains a crucial means of assisting borrowers in managing their student loan obligations.