The Biden administration announced on Friday that it is utilizing existing student loan forgiveness programs to cancel an additional $7.4 billion in student debt for 277,000 borrowers. This brings the total amount of student loan debt canceled under President Joe Biden to $153 billion for nearly 4.3 million individuals, which accounts for more than 9% of all outstanding federal student loan debt.
President Biden's administration has focused on making it easier for specific groups of borrowers, such as public sector workers, to qualify for loan forgiveness. Additionally, a new repayment plan called SAVE (Saving on a Valuable Education) has been launched to provide a shorter pathway to loan forgiveness for many low-income borrowers. This plan has faced legal challenges from Republican-led states, with some arguing that the cost is being shifted to taxpayers who did not attend college or have already paid off their loans.
