Biden to forgive $7.4 billion more in student loan debt for 277,000 borrowers

The Biden administration said Friday that is using existing student loan forgiveness programs to cancel another round of student debt, totaling $7.4 billion for 277,000 borrowers.

The Biden administration said Friday that is using existing student loan forgiveness programs to cancel another round of student debt, totaling $7.4 billion for 277,000 borrowers. Under President Joe Biden, the Department of Education has made it easier for some specific groups of borrowers, like public sector workers, to qualify for loan forgiveness. It also launched a new repayment plan that creates a shorter pathway to loan forgiveness for many low-income borrowers – and is at issue in at least two legal challenges from Republican-led states. In total, the Biden administration has authorized the cancellation of $153 billion in student loan debt for nearly 4.3 million people. That’s more than 9% of all outstanding federal student loan debt. As the November election approaches, the Biden administration has been eager to show how much student loan debt it has canceled, making new announcements about debt relief roughly once a month and sending emails directly to eligible borrowers. Earlier this week, Biden announced a new group of student debt relief proposals that could possibly go into effect this fall. Biden’s student loan forgiveness efforts have been sharply criticized by many Republicans, who argue the president is transferring the cost to taxpayers who chose not to go to college or who already paid for it themselves. They also say he is circumventing the Supreme Court, which knocked down Biden’s signature student loan forgiveness program last year. In the past few weeks, two groups of Republican-led states have sued the Biden administration over the income-driven repayment plan launched last year. Known as SAVE (Saving on a Valuable Education), the plan offers the most generous terms for low-income borrowers.