Biden forgives another $7.7 billion in student loans for 160,000 Americans to bring total to $167 billion wiped

The Biden administration announced it has approved an additional $7.7 billion in student debt forgiveness, bringing the total amount of debt borrowers have seen forgiven since President Biden took office to $167 billion.

It’s the latest step in an ongoing effort by the president to wipe out millions of student loan debt.

Some have applauded the effort to provide relief for those burdened by mounting debt, but it has also drawn strong condemnation from others who say eliminating student debt is unfair and aaccuse Biden of trying to “buy votes” ahead of the 2024 election.

On Wednesday, 160,500 borrowers were approved for debt forgiveness, bringing the total number of Americans who have had their student debt forgiven to 4.75 million.

The new round of debt forgiveness includes those who have received government loan forgiveness, enrolled in Biden’s Saving on a Valuable Education (SAVE) plan and are eligible for the shortened time to forgiveness, and some have had their debt wiped out thanks to changes to the Income-Driven Repayment (IDR) . ) plan.

More than one in 10 federal student loan borrowers have been approved for some debt relief, according to the Biden administration.

“The Biden-Harris Administration remains persistent in our efforts to relieve millions of student debt burdens across the country, and this announcement proves that,” Secretary of Education Miguel Cardona said in a statement.

“One in 10 federal student loan borrowers approved for debt relief means one in 10 borrowers now have financial breathing room and a burden lifted,” he added.

Student protesters outside the Supreme Court on June 30, 2023. The Supreme Court blocked President Biden’s original student loan debt relief plan last year

The Biden administration has steadily erased debt despite the Supreme Court blocking his original plan to cancel student loan debt nearly a year ago.

After the first attempt was blocked, the government changed its approach to go through a longer regulatory process.

Last summer, Biden announced the income-driven SAVE plan. To date, more than eight million borrowers have received assistance through the plan, including 4.6 million who have $0 monthly payments.

But more than a dozen Republican attorneys general have signed lawsuits in an effort to block the Biden administration’s latest effort.

They have accused the government of shifting the burden of student loans onto other taxpayers who have not chosen to take out huge loans or earn expensive college degrees.

The Biden administration previously estimated that the SAVE plan would cost $156 billion over 10 years. The Congressional Budget Office said that figure is closer to $230 billion.

Borrowers whose debts are set to be forgiven on Wednesday as part of the student loan forgiveness round will receive emails notifying them that they have been approved.

The Ministry of Education said the cancellations will be processed in the coming weeks.