The Biden administration is making progress towards its goal of forgiving 30 million student debts by winter, with nearly 25 million borrowers set to receive relief in the coming months. This commitment follows President Biden’s announcement to write off $7.7 billion in student loans for 160,000 borrowers, with the Department of Education aiming to finalize the plan and deliver relief this fall. So far, the administration has forgiven $167 billion in student loans for 4.75 million Americans, with each borrower receiving an average of over $35,000 in debt cancellation through a series of executive actions.
U.S. Secretary of Education Miguel Cardona emphasized the impact of this debt relief, stating that for every 10 federal student loan borrowers approved for debt relief, financial breathing room and a burden lifted. The majority of the relief, $5.2 billion, went towards public service workers such as teachers, nurses, and law enforcement officials, benefiting 66,900 borrowers. Additionally, $613 million was allocated to 54,300 borrowers enrolled in the Saving on A Valuable Education (SAVE) Plan. The Biden administration’s new plan aims at providing relief to over 30 million Americans across different categories of borrowers through the Higher Education Act, including waiving interest, discharging debt for eligible borrowers, canceling debt for long-time borrowers, and providing assistance to those facing financial hardship.
Despite facing political and legal obstacles, Biden has continued to push for student loan forgiveness, with the recent round of cancelations coming less than six months before the election. The Supreme Court rejected his plan to erase $400 billion in student debt last June, and his SAVE Plan currently faces legal challenges from 18 states who argue he overstepped his authority. Biden’s re-election campaign promise to provide student debt relief has been a central focus of his administration, with over 7.5 million borrowers enrolled in the SAVE Plan. As the election approaches, Biden is expected to face off against the presumptive Republican nominee, former president Donald Trump, in a tight race according to recent polls.
The Department of Education and the White House have not yet commented on the recent actions regarding student loan forgiveness and relief. The Biden administration’s efforts in this area have been met with both support and criticism, as they work towards providing financial relief to millions of Americans burdened by student loans. President Biden and Education Secretary Miguel Cardona have continued to advocate for debt forgiveness as a means of alleviating the financial strain on borrowers, especially in light of the ongoing economic challenges facing many Americans. Ultimately, the administration’s goal of forgiving 30 million student debts represents a significant step towards addressing the student loan crisis in the United States.
