STUDENT LOAN UPDATE: BIDEN CANCELS $7.7 BILLION OF DEBT
President Joe Biden announced on Wednesday that he is canceling some $7.7 billion in student debt for another 160,000 borrowers.
The latest relief will go to borrowers in three categories: almost 67,000 borrowers who are eligible for debt cancellation through the Public Service Loan Forgiveness program, approximately 54,000 who are enrolled in a new income-driven repayment plan, and 39,200 enrolled in earlier income-driven plans.
Read more: Student Loan Forgiveness Updates and FAQs
The administration has been announcing new rounds of forgiveness as more people qualify under those categories.
"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," Biden said in a statement. "I will never stop working to cancel student debt—no matter how many times Republican-elected officials try to stop us."
With the latest action, the Biden administration said it has canceled $167 billion in student debt for 4.75 million Americans.
Education Secretary Miguel Cardona said one in 10 federal student loan borrowers have been approved for some form of debt relief.
Read more: Federal PLUS Student Loans 2024 Review
"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," Cardona said. "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."
Cancellation is going ahead even as Biden's Saving on A Valuable Education (SAVE) plan, which offers a faster path to forgiveness, is facing legal challenges from 18 states that are arguing that Biden needs to go through Congress to overhaul federal repayment plans.
Last month, Biden outlined a new proposal for mass cancellation that has been in the works since the Supreme Court rejected his first attempt last year.
Read more: How to Consolidate Student Loans
That attempt would have erased up to $20,000 in federal student loans for those with annual incomes below $125,000 or couples with incomes below $250,000. It was estimated to cost $400 billion and cancel at least some student debt for more than 40 million people. The Supreme Court struck it down, saying Biden overstepped his authority.
The new plan uses a different legal justification and targets five categories of borrowers, focusing on those believed to be in the greatest need of help. It would provide relief to an estimated 30 million borrowers. But Republicans have blasted the estimated $127 billion price tag.
Update 5/22/24, 6:50 a.m. ET: This article has been updated with additional information.
2024-05-22T09:50:19Z dg43tfdfdgfd
