Biden Cancels $9 Billion In Student Debt For 125,000 Borrowers

Posted on 10/04/23 | News Source: CNBC

President Joe Biden announced Wednesday that he approved $9 billion in student loan forgiveness for 125,000 Americans.

The relief is a result of his administration’s fixes to a number of programs, including the income-driven repayment plans and Public Service Loan Forgiveness.

More than $5 billion of the aid will go to 53,000 borrowers who’ve worked in public service for a decade or more; $2.8 billion of the forgiveness is for 51,000 borrowers enrolled in income-driven repayment plans; and another $1.2 billion of the cancellation will go to 22,000 borrowers with disabilities.

The announcement is likely to help Biden as he runs for reelection, experts say.

“Biden has forgiven more student loan debt than any previous president,” said higher education expert Mark Kantrowitz. “It distinguishes him from other candidates who are campaigning for the nation’s highest office.”

The latest forgiveness comes months after the Supreme Court struck down Biden’s plan to cancel up to $20,000 in student debt for tens of millions of Americans. After that setback, Biden said he’d pursue other paths to deliver borrowers relief.

Astra Taylor, co-founder of the Debt Collective, a union for debtors, applauded Biden for the $9 billion in aid, but called on him to do more.

“If the Department of Education can cancel this amount, it can cancel it all — meeting and exceeding the president’s commitment to borrowers currently being crushed by the chaotic return to repayment,” Taylor said.