LAST YEAR, THERE ARE HUNDREDS OF THOUSANDS OF PEOPLE WHO HAVE A NEW BALANCE, $0.00. THE RELIEF AND CELEBRATION CAME IN A FLURRY. >> I HAVE BEEN PAYING ON MY STUDENT LOANS FOR 38 YEARS. >> I AM THANKFUL FOR THE BIDEN ADMINISTRATION TO FINALLY COME THROUGH. >> Reporter: THE BIDEN ADMINISTRATION WIPING AWAY $39 BILLION IN STUDENT DEBT. >> TO SEE ZERO DOLLARS -- I'M USED TO SEEING ZERO DOLLARS IN MY CHECKING ACCOUNT, NOT MY STUDENT LOANS, CREDIT CARD, OR ANYTHING LIKE THAT, SO IT IS SHOCKING ADJUSTMENT TO. IX >> Reporter: AFTER MORE THAN 20 YEARS OF PAYMENTS, SARAH WALTON'S $40,000 BALANCE GONE OVERNIGHT. HOW? THE EDUCATION DEPARTMENT JUST DID A ONE TIME ADJUSTMENT, TO FIX ERRORS, WITH SOME PROGRAMS THAT FORGIVE LOANS AFTER DECADES OF MONTHLY PAYMENTS. BORROWERS GOT CREDIT FOR LATE OR PARTIAL PAYMENTS, AND SERVICES PUT THEIR LOANS IN AN EXTENDED PAUSE FOR FORBEARERS. >> THESE SHOULD HAVE BEEN IN AN INCOME REPAYMENT PLAN. THIS THE SYSTEM HAD WORKED, THESE BORROWERS WOULD HAVE HAD THEIR LOANS CANCELED A LONG TIME AGO. >> Reporter: WHILE THIS ISN'T THE WIDESPREAD CANCELLATION THAT THE SUPREME COURT BLOCKED IN JUNE, THE ADMINISTRATION SAYS THIS RELIEF WILL IMPACT MORE THAN 800,000 BORROWERS. WHAT DOES FORGIVENESS MEAN TO YOU? >> I AM NOT SO PRESSURED TO PAY MY BILLS. I CAN START FUNDING A WAY TO GET A CAR, SINCE I HAVE NEVER OWNED A CAR IN MY ENTIRE LIFE. >> Reporter: WITH COLLEGE DEBT NEARLY $1.8 TRILLION NATIONWIDE, THE PRESIDENT IS CELEBRATING THE CHANGE AND PREVIEWING THE DISMAL ACTION. >> I PROMISE TO FIX THE PROBLEMS WITH THE EXISTING STUDENT LOAN PROGRAM. IT HAS BEEN GOING ON FOR MUCH TOO LONG AND I AM PROUD OF KEEPING THAT PROMISE. >> YOU THINK IT IS UNLAWFUL, ILLEGAL, AND UNCONSTITUTIONAL? >> Reporter: TWO CONSERVATIVE GROUPS LAUNCHING ANOTHER LEGAL FIGHT, ASKING THE FEDERAL COURT TO BLOCK FUTURE FORGIVENESS. >> THIS IS NOT AN ADMINISTRATIVE FIX. WHAT THEY ARE DOING IS JUST TRYING TO MAXIMIZE OUR CANCELLATION OF LOANS AS MUCH AS POSSIBLE USING THIS SO- CALLED ADJUSTMENT AS A PRETEXT FOR DOING SO. >> Reporter: BUT, AS IT STANDS, CANCELLATION THAT MANY THOUGHT WAS A DREAM IS NOW A REALITYID >> IT STILL SAID ZERO AND THE. >> I TRIED LOGGING IN TO MAKE SURE THAT IT SAID ZERO DOLLARS. AND IT STILL SAID ZERO? >> IT STILL SAID ZERO, AND THE SMILE HAS NOT LEFT MY FACE. >> THESE BORROWERS DIRECTLY, I WONDER, COULD THE STUDENT DEBT RELIEF AND STILL BE CHALLENGED IN THE COURTS? >> Reporter: IT STOOD COULD BE CHALLENGED IN THE COURTS. BUT EVEN FOR THOSE WHO ARE CHALLENGING THIS NEW MOVE BY THE ADMINISTRATION IS THAT IT IS UNLIKELY FOR THE COURTS TO REVERSE FORGIVENESS THAT ALREADY HAPPENED SMILING BECAUS PAYMENT COMING UP, GO TO. TUDENT WHAT THIS COULD IMPACT IS FUTURE ROUNDS OF FORGIVENESS. BY THE WAY, IF YOU ARE NOT ONE
