The Biden administration announced a major step in its ongoing efforts to alleviate the burden of student loans by canceling an additional $7.7 billion in debt for 160,000 Americans. This announcement, made on Wednesday, marks another significant milestone as President Joe Biden continues to push for student debt relief amidst growing criticism from Republicans.
Progress Amid Political Challenges
With the November election approaching, the administration has been keen to showcase its progress in debt cancellation programs, making monthly announcements. President Biden has faced backlash from Republicans who argue that these measures shift the financial burden onto taxpayers and undermine the Supreme Court, which blocked the administration’s previous student loan forgiveness plan last year.
Building on Previous Efforts
This recent announcement follows an April declaration where the administration canceled $7.4 billion in student loans for 277,000 borrowers and introduced new student debt relief proposals set to take effect this fall. The latest addition brings the total number of Americans who have had their loans canceled to 4.75 million, with an average relief amount exceeding $35,000 per borrower, according to the White House.
Programs Benefiting from the Latest Cancellation
The borrowers impacted by this latest round of cancellations were approved through various programs, including the Biden administration’s SAVE Plan, income-driven repayment programs, and the Public Service Loan Forgiveness program.
President Biden reiterated his commitment to this cause, stating, “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.”
Breakdown of the Forgiven Loans
Among the borrowers affected, 66,900 individuals qualified through the Public Service Loan Forgiveness program, resulting in $5.2 billion being forgiven. This brings the total amount forgiven for public service workers, including teachers and nurses, to $68 billion. Additionally, more than 54,000 borrowers enrolled in the SAVE plan, who had taken out smaller loans for graduate studies, received $613 million in relief. Another 39,200 borrowers enrolled in income-driven repayment programs saw $1.9 billion forgiven.
Biden Administration Pursues Student Loan Relief Plans
The Biden administration is also working on new proposals aimed at delivering relief to specific groups of borrowers. One notable proposal includes wiping away accumulated interest for those whose student loan balances have grown larger than the amount initially borrowed. While these proposals are still in development, some could be implemented as early as this fall.
As the administration continues to navigate the complexities of student loan forgiveness, the ongoing efforts reflect a broader commitment to easing the financial burden on millions of Americans. The latest announcement underscores the administration’s dedication to making higher education more accessible and affordable, despite the political challenges it faces.
