Biden canceling student debt for more than 160,000 borrowers
President Biden announced Wednesday he would be canceling student debt for more than 160,00 borrowers.
The new plan forgives $7.7 billion for the latest batch of borrowers, bringing the total relief from Biden’s student debt actions to $167 billion for 4.75 million Americans. The latest loan forgiveness initiative comes through various income-driven repayment (IDR) plans, including the president’s newly established SAVE program.
The 160,000 borrowers are people enrolled in the Biden administration’s SAVE Plan, and are public service workers like teachers, nurses, or law enforcement officials, or are borrowers who were approved for relief because of fixes to IDR plans.
“The Biden-Harris Administration remains persistent about our efforts to bring student debt relief to millions more across the country, and this announcement proves it,” Education Sec. Miguel Cardona said in a statement. “One out of every 10 federal student loan borrowers approved for debt relief means one out of every 10 borrowers now has financial breathing room and a burden lifted.”
Biden made forgiving student debt a campaign promise in 2020 and is stepping up his recent efforts as he works to appeal to young voters ahead of November's election.
Last month, the administration canceled student debt for more than 277,000 borrowers. Those actions targeted public service workers, those on IDR plans, borrowers defrauded by their schools and people with disabilities.
Biden last month also announced a plan to give relief to 25 million borrowers, including those on IDR plans, people who participated in low-financial-value education programs, individuals experiencing hardship and borrowers whose debt has grown due to unpaid interest. The plan, if finalized, will almost certainly be challenged in court.
The latest plans are part of the president’s efforts to find a workaround after the Supreme Court struck down his student debt relief plan in June.