U.S. Department of Education announcements

Biden Cancels $7.7 Billion in Student Debt for 160,000 Borrowers, Total Relief Reaches $167 Billion

May 22, 2024, 03:00 PM

President Joe Biden announced on Wednesday the cancellation of $7.7 billion in student debt for 160,000 borrowers. This latest round of debt forgiveness brings the total amount of student debt canceled by the Biden administration to $167 billion, benefiting nearly 5 million Americans. More than 1 in 10 Americans with federal student loans have received some measure of debt relief, averaging $35,000 per borrower. The relief includes $5.2 billion for 67,000 Public Service borrowers, $613 million for 54,000 SAVE Plan borrowers, and $1.9 billion for 39,000 income-driven repayment borrowers. Despite facing legal challenges from Republican states and criticism for shifting the burden to taxpayers, as well as a previous Supreme Court ruling against similar actions, the Biden administration continues to pursue measures to alleviate the student debt burden on households.