In a move aimed at providing relief to borrowers burdened by student loan debt, President Biden announced on Friday that his administration has forgiven nearly $5 billion in student debt for 74,000 individuals. This latest round of debt cancellation comes after the Supreme Court invalidated the president's more ambitious loan forgiveness program last year.
Among the beneficiaries of this round of cancellations, approximately 44,000 are teachers, nurses, firefighters, and other public service workers who have been diligently repaying their debts for over a decade. Additionally, almost 30,000 borrowers who have been making loan payments for at least 20 years will finally receive the relief they earned through income-based plans.
With this recent announcement, the total number of Americans who have had their student debts cancelled under the Biden administration now exceeds 3.7 million. This marks a significant step towards addressing the student debt crisis that affects more than 43 million people nationwide, who collectively owe $1.6 trillion in federal loans for college.
President Biden, a long-time advocate for student loan debt cancellation, has faced opposition in his pursuit of relief for borrowers. Last year, the Supreme Court ruled that the president lacked the authority to broadly cancel student loan debt. However, Biden remains committed to finding alternative paths to deliver relief to as many borrowers as possible.
The administration's efforts to provide relief have been ongoing. In October, $9 billion in loans were forgiven for approximately 125,000 borrowers working in public service jobs and those with permanent disabilities. Last month, nearly $5 billion in relief was announced for 80,300 borrowers. Additionally, the administration launched the Saving on a Valuable Education (SAVE) plan, which aims to reduce monthly payments and shorten the life of loans for millions of borrowers.
In a statement, President Biden emphasized the importance of improving the student loan system to ensure that higher education provides opportunity and prosperity rather than unmanageable burdens of debt. He expressed his determination to use every tool at his disposal to deliver the relief that borrowers need to achieve their dreams.
The announcement of student debt cancellation comes at a crucial time, as it addresses a pressing issue for key voting blocs, particularly young people and Black borrowers who disproportionately carry the weight of student loan debt. While the Supreme Court's ruling limited the scope of the president's original plan, the Biden administration continues to take steps towards alleviating the burden of student debt and providing much-needed relief to borrowers across the country.
Eligible borrowers who wish to enroll in the SAVE plan can do so at studentaid.gov, taking advantage of the opportunity to reduce their remaining loan balances and ease their financial burdens.
