The average student loan borrower will see their monthly bill drop by up to $300 a month when payments restart, says the Education Department

The Department of Education says that President Joe Biden's student loan relief will give some borrowers a bit more relief.

In a video posted Monday, the chief of staff for the Office of Postsecondary Education gave an overview of what borrowers can expect next year. After Biden's forgiveness, loans will be re-amortized.

Monthly payments will be adjusted based on a borrowers remaining balance.

The average borrower on a standard repayment plan will see their monthly payments decrease by up to $300 a month. 45 days before the payment pause ends, your servicer will inform you of your new payment amount and terms.

Student loan payments were paused for one final time through the end of 2022. The pause in payments was extended for a fifth time due to rising costs and COVID-19 hospitalizations.

The Federal Reserve found in a report that student loan borrowers were behind on their payments less often in the fall and more often in the spring. Biden's $10,000 in relief for borrowers would be wiped out by the majority of borrowers who owe less than $25,000.

According to the Federal Reserve, the median monthly payment for borrowers who are eligible for the pause and potential relief was $170 a month before the swine flu epidemic. Even though many are still dealing with ballooning debt from spiraling interest, remaining borrowers who had a portion of their balance forgiven can see relief on their monthly bills. According to Insider's Ryan Wangman, the relief will mean that borrowers will have less debt to pay off.

According to the Federal Reserve, more than half of the borrowers didn't make a single payment on their loans. The borrowers who made payments during the pause will be given refunds on their payments. Thousands of dollars have been returned to the borrowers' bank accounts.