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Biden Announces $7.7 Billion in Student Debt Relief

You are currently viewing Biden Announces $7.7 Billion in Student Debt Relief
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On Wednesday, U.S. President Joe Biden announced the cancellation of an additional $7.7 billion in student debt for 160,000 borrowers. This move increases the total number of people who have benefited from his debt relief efforts to 4.75 million, despite opposition from Republicans.

Biden, aiming to boost his appeal among young voters ahead of the upcoming November presidential election, had promised to explore other methods for debt relief after the Supreme Court blocked his broader plan to cancel $430 billion in student loan debt in June.

According to Biden, the latest beneficiaries are individuals enrolled in the Saving on a Valuable Education (SAVE) Plan, with each receiving an average of over $35,000 in debt cancellation. This group includes teachers, nurses, law enforcement officials, and other public service workers, as well as borrowers approved for relief through various other changes, the White House stated.

“Today’s announcement builds on the significant progress we’ve achieved for students and borrowers over the past three years,” Biden said in a statement. “I will never stop working to cancel student debt – no matter how many times Republican elected officials try to stop us.”

With this latest announcement, the total debt relief approved by the Biden administration now stands at $167 billion.

The issue of student debt relief remains a priority for younger voters, many of whom are also critical of Biden’s foreign policy, particularly regarding the war in Gaza, and are disappointed that he hasn’t achieved broader debt forgiveness.

Former President Donald Trump’s campaign, Biden’s Republican rival in the presidential race, criticized the student loan cancellation in March, calling it a bailout carried out “without a single act of Congress.” Republicans argue that Biden’s approach to student loan forgiveness is an overreach of his authority and unfairly benefits college-educated borrowers while others receive no such relief.

As of the end of 2023, there were 43.2 million U.S. student loan recipients with over $1.6 trillion in outstanding loans, according to the Federal Student Aid website, part of the U.S. Department of Education. Since the 2008 financial crisis, higher education debt has tripled.

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