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Friday, June 21, 2024

Biden Administration Cancels $7.7 Billion in Student Debt

U.S.Biden Administration Cancels $7.7 Billion in Student Debt

President Biden announced another round of student loan forgiveness on Wednesday, canceling $7.7 billion in debt for 160,000 people in what has become a centerpiece of his campaign for re-election.

The announcement builds on Mr. Biden’s strategy of chipping away at college debt by refining existing programs, even as his administration pursues an even larger plan over the opposition of Republicans.

Many borrowers in this round of forgiveness, who qualified through public service loan forgiveness, the president’s SAVE plan or another income-driven repayment plan, have already begun receiving emails notifying them of their approvals, the Education Department said in a statement.

The Biden administration has now canceled about $167 billion in loans for 4.75 million borrowers, or roughly one in 10 federal loan holders. The president has set forward a much bigger goal: forgiving debt for nearly 30 million borrowers as soon as this fall. But the broader program is still being finalized and could fall victim to legal challenges, as Mr. Biden’s first, far more ambitious attempt at mass debt cancellation did.

Forgiving student loan debt is a key part of Mr. Biden’s outreach to the younger voters who overwhelmingly supported him in 2020 but have shown signs of drifting away.

“From Day 1 of my administration, I promised to fight to ensure higher education is a ticket to the middle class, not a barrier to opportunity,” the president said in a statement.

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