Here's Who Actually Got Student Loan Forgiveness — and How They Benefited

Even though student loan forgiveness has been in the spotlight throughout President Joe Biden’s term, not much is known about the borrowers lucky enough to have actually received the relief.

Stepping in to fill the information void, the Consumer Financial Protection Bureau, or CFPB, released a first-of-its-kind representative study Wednesday on borrowers whose student loans were partially or fully forgiven.

“Student loan debt relief has been a lifeline for many borrowers, allowing them to make positive changes in their lives,” CFPB Director Rohit Chopra said in a news release. “However, it’s clear that many borrowers are struggling with repayment, and there is more work to be done to ensure repayment options are accessible and effective.”

The sprawling study, conducted between October 2023 and January 2024, found that 63% of borrowers reported struggling to make payments, and that student debt often leads borrowers to delay buying a home, starting a family, getting a new job and even receiving medical care.

Nearly a third of borrowers (30%), said they went without food, medicine or other necessities at some point because of their student debt.

Who’s actually gotten their student loans forgiven?

According to the Biden’s administration’s running tally, it has forgiven some $175 billion of student debt for nearly 5 million borrowers.

In lieu of broad forgiveness — plans for which have been struck down and challenged by the courts — Biden’s administration pursued loan cancellation through a variety of already existing programs, which it overhauled to fast-track forgiveness.

These include the Public Service Loan Forgiveness (PSLF), income-driven repayment (IDR) programs and initiatives to cancel loans for borrowers defrauded by their schools and for borrowers who became permanently disabled.

Before the CFPB’s new survey, researchers had to estimate the number of borrowers who had gotten their loans forgiven by tallying up the results of that patchwork of programs. The new survey provides a comprehensive look at the scope of student loan forgiveness and the financial impact of student loan debt.

According to the CFPB, about 10% of all federal student loan borrowers have received debt relief on at least one of their loans. The average amount of canceled debt per borrower was nearly $38,000.

Borrowers who received student debt relief have median household incomes ranging from $50,000 to $65,000, lower than the overall median household income of just under $75,000.

In roughly 1 out of 4 cases, the borrower whose debt was forgiven did not complete their degree. These borrowers, saddled with debt but without the benefit of an income-boosting college diploma, are among the ones struggling the most with their finances. Separate research shows that 45% of borrowers who drop out end up defaulting on their federal loans, making them most likely group to do so.

The CFPB also tracked demographic factors, finding that recipients of student loan debt relief were more likely to be female, or Black or at least 30 years old.

Of those who received forgiveness, more than 60% said it helped them make a positive life change such as starting a family, moving into a new home, saving more money and retiring.

Will Biden cancel more student debt before leaving office?

Despite several attempts from the Biden administration, broad student loan forgiveness has yet to happen. Increasingly, it looks unlikely that it will take place before President-elect Donald Trump takes office.

Broad forgiveness measures as well as the income-based SAVE plan remain stymied by court challenges.

The long-standing PSLF program, which has been Biden’s most effective tool at canceling debt so far, is still operational, and public-sector workers who qualify for relief under this plan can expect to receive it through the remainder of Biden’s term. Once Trump takes office, its future is less certain.

In October, just weeks before the election, the Biden administration made a last-ditch effort at forgiveness. Even though Biden's previous broad forgiveness plans were either struck down or halted by the courts, the Education Department presented a new, tailored plan that it believes is not subject to the courts’ previous rulings.

If this latest plan isn't blocked in court, it could provide debt relief for up to 8 million borrowers who are experiencing financial hardship, but Trump's re-election throws its future in doubt, and it isn’t clear if the department will have enough time to cancel any loans before he takes office.

More from Money:

What Happens to Student Loans If Trump Closes the Education Department?

Student Loan Borrowers to Get Relief Checks After $120 Million Navient Settlement

How to Pay Off Student Loans Fast