Biden Announces $39 Billion Student Loans Will Be ‘Automatically Discharged’ Soon

In a latest update to the federal student loan forgiveness program, the education department notified that it'll soon begin discharging $39 billion worth of federal student loans.

President Joe Biden is joined by Education Secretary Miguel Cardona as he announces new actions to protect borrowers after the Supreme Court struck down his student loan forgiveness plan in the Roosevelt Room at the White House on June 30, 2023. Chip Somodevilla/Getty Images

The Department of Education announced Monday that it will begin notifying more than 804,000 borrowers that their $39 billion in federal student loans will be “automatically discharged in the coming weeks.”

“The forthcoming discharges are a result of fixes implemented by the Biden-Harris Administration to ensure all borrowers have an accurate count of the number of monthly payments that qualify toward forgiveness under income-driven repayment (IDR) plans,” said the administration in an Aug. 14 press release—a month after the forgiveness plan was announced.