**Washington, DC -** President Biden announced today that the American Rescue Plan has already led to the cancellation of student debt for nearly 400,000 borrowers..
The American Rescue Plan, which was signed into law in March 2021, included a provision that made certain student loan borrowers eligible for up to $50,000 in debt cancellation. The provision was designed to help borrowers who were most affected by the COVID-19 pandemic..
To date, the Department of Education has forgiven $12.5 billion in student loan debt for 394,915 borrowers. The average amount of debt forgiven per borrower is $31,673..
The borrowers who have received debt cancellation under the American Rescue Plan include:.
* Borrowers who were in default on their student loans.
* Borrowers who were behind on their student loan payments.
* Borrowers who had been unemployed for at least 12 weeks.
* Borrowers who had a household income below 150% of the poverty level.
The Department of Education estimates that the American Rescue Plan will ultimately lead to the cancellation of student debt for more than 7 million borrowers..
**President Biden said:**.
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