Biden Announces $7.7 Billion Student Loan Cancellation for 160,000 Borrowers

On Wednesday, President Biden revealed the decision to eliminate $7.7 billion in student loans belonging to 160,000 borrowers. This move aligns with his approach of gradually addressing college debt by making adjustments to existing programs while his administration pursues a broader forgiveness plan.

According to a statement from the Education Department, many borrowers, who qualified through public service loan forgiveness, the president’s SAVE plan, or another income-driven repayment plan, have started receiving emails informing them of their approvals.

Focus on Loan Forgiveness

This year, the White House has consistently made loan forgiveness announcements, which has become a pivotal element of President Biden’s re-election message. He has emphasized that overcoming the financial burden of education is a significant obstacle for working families.

President Biden highlighted, "From Day 1 of my administration, I promised to fight to ensure higher education is a ticket to the middle class, not a barrier to opportunity".