Biden to cancel $7.7 billion in student debt for 160,000 borrowers

President Joe Biden on Wednesday announced a new round of federal student debt forgiveness that his administration says will provide relief to 160,000 borrowers.

The Department of Education said it is canceling $7.7 billion for certain borrowers who received public service loan forgiveness, such as teachers, nurses and police officers.

Debt relief also applies to some borrowers who have enrolled in a relatively new income-based repayment plan known as SAVE and who qualify for a benefit that provides “reduced forgiveness time,” as well as borrowers who are receiving relief due to other income-based repayment adjustments.

The Department of Education said the approved debt cancellation includes $5.2 billion for nearly 67,000 borrowers as a result of changes to Public Service Loan Forgiveness, $613 million for more than 54,000 borrowers through the SAVE Plan and $1.9 billion to more than 39,000 borrowers through administrative income adjustments. boosted refund counts.

The latest announcement comes after a broader effort to reduce student debt failed. The Supreme Court last year rejected Biden’s pandemic-era debt relief plan, which aimed to clear up to $20,000 in student debt for about 43 million borrowers.

The total number of people who have benefited from debt cancellation actions is 4.75 million, according to the Department of Education, adding that the administration has already approved $167 billion in loan forgiveness.

Education Secretary Miguel Cardona said in a statement Wednesday that the administration “remains persistent” in its efforts “to bring student debt relief to millions more people across the country.”

Biden also touted debt relief in a statement, saying, “I will never stop working to cancel student debt — no matter how many times Republican elected officials try to stop us.”