Biden Admin Cancels $7.7B More in Student Debt

Money with graduation cap | Image by Brian A Jackson/Shutterstock
Money with graduation cap | Image by Brian A Jackson/Shutterstock

President Joe Biden announced on Wednesday that his administration is canceling student debt for 160,000 more people, bringing the total number of people that have benefitted from the federal government’s debt relief actions to 4.75 million, according to the White House.

The debt cancellation will benefit borrowers enrolled in the Public Service Loan Forgiveness (PSLF) program, those receiving forgiveness on income-driven repayment (IDR) due to adjustments made by the Biden administration, and those eligible under Biden’s Saving on a Valuable Education (SAVE) Plan, per a U.S. Department of Education news release.

Under this recent rollout, $5.2 billion will go toward 66,900 borrowers through fixes to the PSLF, $1.9 billion will go toward 39,200 borrowers under the IDR payments, and $613 million will go toward 54,300 borrowers under the SAVE plan.

“Today’s announcement comes on top of the significant progress we’ve made for students and borrowers over the past three years,” Biden said in a White House release.

“From day one of my administration, I promised to fight to ensure higher education is a ticket to the middle class, not a barrier to opportunity. I will never stop working to cancel student debt – no matter how many times Republican elected officials try to stop us.”

This latest debt rollout brings the total debt cancellation under the current president’s administration to $167 billion.

“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,” U.S. Secretary of Education Miguel Cardona said in the agency’s release.

“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.”

In April, the Biden administration canceled student debt for over 277,000 borrowers, as The Dallas Express reported. The month before saw debt canceled for 78,000 public service workers part of the PSLF.

The cancellation of student debt has led to criticism of the Biden administration, as the U.S. debt is on an upward trend. The current national debt is $34.59 trillion, per FiscalData, up from $34.55 trillion in April.

Several states nationwide have sued the administration to block Biden’s bid to cancel student debt, as reported by The Dallas Express.

One of the states includes the Lone Star state, where Sen. Ted Cruz (R-TX) called Biden’s decision to move forward with student debt cancellation plans “shameless” and “utterly unsurprising” in an appearance on Fox Business. He alleged that Biden’s actions are an illegal “vote-buying scheme.”

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