Biden canceling student debt for more than 277,000 borrowers

President Biden announced Friday that he would cancel the debt of more than 277,000 borrowers.

The administration has forgiven $7.4 billion to borrowers in more than 40 states in its latest debt relief program, bringing the total student loan cancellations under Biden’s presidency to $153 billion.

The latest loan forgiveness initiatives are being delivered through a variety of income-driven repayment (IDR) plans, including the President’s newly established SAVE program.

“From day one in office, I promised to fight to make higher education a ticket to the middle class, not a barrier to opportunity. We will never stop working to cancel loans,” Biden said in a statement.

Biden’s loan forgiveness measures primarily target public servants, people in IDR plans, borrowers defrauded by schools and people with disabilities.

“The administration is tone-deaf. There’s no other way to say it,” said Rep. Virginia Foxx, R-N.C., chair of the House Education Committee, in response to Biden’s Friday announcement.

“We know that the government has not done its job and focused its time, energy and resources on an illegal student loan system. “That’s frustrating,” Fox said, referring to the difficulties of deploying the FAFSA. “What is absolutely infuriating, however, is that the government is still not living up to its responsibilities and is instead focusing on student loan shenanigans.”

This latest debt relief effort will extend loans to those on IDR plans, those who have participated in educational programs of low economic value, individuals experiencing hardship, and borrowers whose debt has ballooned with unpaid interest. This builds on Biden’s announcement earlier this week that he would waive the exemption.

The Penn Wharton Budget Model (PWBM) estimates the proposed plan, released earlier this week, would cost about $84 billion.

But it will still be months before the plan is approved and almost certainly goes to court.

“We know what the Republicans are going to do. We can’t stop them. But that doesn’t stop the president from acting and taking action like he is today.” said Karine Jean-Pierre, White House press secretary at the time.