$7.7 Billion in Additional Student Debt Cancelled by Biden, Affecting 160,000 Borrowers.

$7.7 Billion in Additional Student Debt Cancelled by Biden, Affecting 160,000 Borrowers.
  • May 23, 2024
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Despite opposition from Republicans, U.S. President Joe Biden said on Wednesday that an additional $7.7 billion in student debt for 160,000 borrowers would be canceled. This brings the total number of people who would benefit from Biden's debt relief initiative to 4.75 million.

In June, the Supreme Court blocked Biden's larger plan to erase $430 billion in student loan debt. Since then, Biden has been looking to shore up his declining support among young people ahead of the November presidential election.

Biden stated that those engaged in the Saving on a Valuable Education (SAVE) Plan, who have received an average of nearly $35,000 in debt cancellation, are the beneficiaries of the newest initiatives.

The White House stated that they include public servants such as teachers, nurses, police officers, and other staff members, as well as borrowers who were granted relief through other adjustments.

In a statement, Biden stated, "We've made tremendous progress for students and borrowers over the past three years, and today's announcement builds on that." Despite the numerous attempts by Republican-elected officials to thwart our efforts, I will never give up on my goal of canceling student debt.

With the statement on Wednesday, the Biden administration has now authorized $167 billion in debt relief.

Younger voters, many of whom blame Biden for not securing larger debt forgiveness and have reservations about his foreign policy on the Gaza war, continue to place a high priority on the issue.

The Republican opponent of Biden for the presidency, former President Donald Trump, attacked the student debt cancellation in March, claiming it was a bailout carried out "without a single act of Congress."

Republicans have blasted Biden's approach to student loan forgiveness, saying it is an abuse of power and unfairly benefits college-educated borrowers at the expense of other borrowers who did not.

The website of the Federal Student Aid website, an office of the U.S. Department of Education, states that as of the end of 2023, 43.2 million U.S. beneficiaries of student loans had over $1.6 trillion in outstanding loans. Since the 2008 financial crisis, debt for higher education has tripled. 

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