Actions taken by the federal government will lead to roughly $100 billion in total student loan forgiveness between March 2020 and September 2021, according to Education Department (ED) data and analysis from experts.
The assessment of already-cancelled student debt comes as prominent Democrats — led by Senate Majority Leader Chuck Schumer (D-NY), Senator Elizabeth Warren (D-MA), and Representative Alexandria Ocasio-Cortez — urge a skeptical President Biden to cancel $50,000 in federally-held student loan debt via executive action (as opposed to legislation passed by Congress).
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed in March 2020, paused payments due and interest accrual related to federally-backed student debt, affecting more than 44 million borrowers. The Trump and Biden administrations extended that pause through at least September 2021.
ED recently stated that "borrowers are saving approximately $5 billion per month from the temporary 0% interest rate," which would add up to $90 billion in cancellation over 18 months.
Student loan expert Mark Kantrowitz estimated similar savings from the broad payment pause and found an additional $8 to $16 billion in savings from other measures taken during the pandemic.
