President Joe Biden’s administration has announced the cancellation of another round of student debt, totaling $7.4 billion for 277,000 borrowers. Since taking office, the Department of Education has made it easier for specific groups of borrowers to qualify for loan forgiveness. Under the Biden administration, $153 billion in student loan debt has been canceled for nearly 4.3 million people, representing more than 9% of all outstanding federal student loan debt.
Despite the administration’s efforts to provide relief to student loan borrowers, Biden’s student loan forgiveness initiatives have faced criticism from many Republicans. Some argue that the cost is being transferred to taxpayers who did not attend college or have already paid off their debts. Additionally, there have been legal challenges from Republican-led states against the new repayment plan launched last year, called SAVE (Saving on a Valuable Education), which provides more generous terms for low-income borrowers. Despite the opposition, nearly 8 million borrowers have enrolled in SAVE since its launch, and about 360,000 people have had their remaining debt canceled.
The Biden administration has been actively pursuing new student debt relief proposals in the lead-up to the November election, aiming to deliver relief to certain groups of borrowers. The Department of Education is also conducting a recount of past payments to correct administrative errors and bring individuals closer to debt relief. While some of the new proposals could potentially take effect as early as this fall, critics continue to push back against the administration’s efforts to provide student loan forgiveness, citing concerns about cost and legal authority.