Biden Administration Cancels $7.7 Billion in Student Loans for 160,000 Borrowers

The Biden administration announced another round of student loan cancellations on Wednesday, wiping out $7.7 billion in federal student loans for 160,000 borrowers. This latest action brings the total amount of student debt canceled by the administration to $167 billion, benefiting nearly 5 million Americans.

President Joe Biden emphasized his commitment to reducing the financial burden of higher education, 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.”

The new wave of relief targets borrowers in three specific categories: 54,000 enrolled in Biden’s new income-driven repayment plan, 39,000 in earlier income-driven plans, and 67,000 eligible through the Public Service Loan Forgiveness program. Biden’s new SAVE Plan offers a faster path to forgiveness, allowing more people to become eligible after 10 years of payments, compared to the longer periods required by previous plans.

Despite legal challenges from Republican-led states, the Biden administration continues to push forward with its debt cancellation initiatives. These efforts also address previous administrative errors that delayed relief for eligible borrowers in other repayment plans.

Currently, 1 in 10 federal student loan borrowers has received some form of loan relief, according to the Education Department. The administration plans to continue announcing new batches of forgiveness each month as more borrowers meet the eligibility criteria.