The Biden-Harris administration recently announced its plan to forgive $7.4 billion in student debt for 277,000 borrowers.
Here are five things dental professionals should know about the plan:
1. When broken down, the student loan relief amounts to $3.6 billion for nearly 206,800 borrowers through Saving on a Valuable Education (SAVE) plan; $3.5 billion for 65,800 borrowers through administrative adjustments to income-driven repayment plans; and $300 million for 4,600 borrowers through fixes to the Public Service Loan Forgiveness program.
2. Borrowers began receiving emails April 12 informing them of their approvals. The loan forgiveness is set to be processed within the next few weeks.
3. The administration said April 12 that its new plan brings the total amount of student loan forgiveness to $153 billion for nearly 4.3 million Americans.
4. 18 states are currently challenging loan cancellation through the SAVE plan, CBS News reported April 12.
5. This is Biden's second attempt at widespread loan forgiveness after the Supreme Court struck down his first effort in July 2023.
Many dental professionals see student loan debt as an inhibiting factor to practice growth and career success. The cost of attending public and private universities has more than tripled in the last 50 years, while the average dental student debt has also increased, reaching an average of $292,169 in 2019.