The Biden administration has unveiled its latest move in tackling the student debt crisis, wiping out an additional $7.4 billion in student loan debt for 277,000 borrowers. With this announcement, the total debt forgiven under Biden’s leadership reaches a staggering $153 billion.
This marks the second significant effort by the White House to alleviate student loan burdens within a week, a move that critics argue is politically motivated ahead of the general election, dubbing it a ploy to ‘buy votes’. Despite opposition, Biden remains steadfast in his commitment to addressing the issue, emphasizing his dedication to ensuring higher education remains accessible.
In a statement, President Biden reaffirmed his pledge to cancel student debt, regardless of opposition from Republican officials. The debt slated for forgiveness encompasses borrowers enrolled in existing debt relief programs, including those targeted by legal challenges from 18 GOP-led states.
The latest initiative builds upon previous efforts such as the Student Aid Verification for Education (SAVE) plan, which has already provided relief to nearly 207,000 borrowers, totaling $3.6 billion. Additionally, administrative adjustments to Income-Driven Repayment (IDR) plans have benefited another 65,000 borrowers, wiping out $49 billion in debt to date. Furthermore, 4,600 public servants have had their debts forgiven through the Public Service Loan Forgiveness program.
With a total of 4.3 million federal student loan borrowers experiencing relief since Biden’s inauguration, the administration continues to push forward with its agenda to alleviate the financial burden of higher education. The bulk of the debt forgiven in this latest announcement is attributed to the SAVE plan, an income-driven repayment initiative aimed at expediting debt forgiveness for eligible borrowers.
This move underscores the Biden administration’s commitment to addressing the student debt crisis and providing tangible relief to millions of Americans struggling with the burden of student loans.