Biden takes another $7.4B step in fight to tame student debt

President Joe Biden has taken another significant step in his ongoing campaign to help Americans get a clean slate on their student loans.

In a statement Friday, the White House announced the cancellation of $7.4 billion in student debt for an additional 277,000 Americans. The announcement is part of a broader Biden administration initiative that has so far facilitated $153 billion in debt relief to 4.3 million Americans through various measures.

The initiative underscores the administration's continued efforts to extend student debt relief, following plans that promise to impact over 30 million Americans when considering the full scope of actions taken over the past three years.

The newest announcement extends relief to borrowers enrolled in the SAVE Plan, other income-driven repayment plans, and participants in the Public Service Loan Forgiveness program.

The administration’s efforts to overhaul income-driven repayment program and the launch of the SAVE Plan last year – hailed as the most affordable repayment strategy to date – have been particularly effective for many debt-saddled Americans.

Currently, the SAVE Plan benefits an estimated 8 million borrowers, with 4.5 million enjoying a monthly payment of zero dollars, and an additional one million borrowers have monthly payments under $100. Notably, for those with lower loan balances, the SAVE Plan promises a quicker route to debt relief after a minimum of 10 years of payments.

Since the Biden administration took office, more than $54 billion in debt cancellation has been approved for 1.3 million borrowers under income-driven repayment plans, including those under the SAVE Plan. This action builds on efforts to clear student loan balances for nearly 900,000 public service workers, 1.3 million borrowers ostensibly cheated by schools and diploma mills, and those affected by related court settlements.

The administration’s ongoing crusade against student debt has also reportedly reached nearly 550,000 borrowers with total and permanent disabilities, including many veterans.

On top of its past strides in canceling student debt, the administration is also looking into new avenues for debt relief. That includes President Biden’s announcement of a “Plan B” earlier this week, which the administration is embarking on in response to the Supreme Court decision last year that shot down his original program.