The Biden administration declared the cancellation of $7.4 billion in student debt for 277,000 borrowers on Friday, marking another step in its efforts to address the student loan burden in the United States.
This announcement comes as President Joe Biden seeks to secure support from young voters ahead of the upcoming November reelection campaign.
Under Biden’s plan outlined earlier in the week, the administration aims to alleviate student debt by canceling up to $20,000 of accrued and capitalized interest for borrowers, regardless of income.
This move is estimated to eliminate the entirety of that interest for approximately 23 million borrowers.
The latest round of debt relief specifically targets individuals enrolled in the SAVE Plan, as well as other borrowers enrolled in Income-Driven Repayment plans and those receiving Public Service Loan Forgiveness.
This follows a previous announcement in March, where $6 billion in student loans were forgiven for 78,000 borrowers.
Since taking office, the administration has approved a total of $153 billion in student debt relief for 4.3 million Americans.
However, this initiative has faced criticism from Republicans, including former President Donald Trump, who argue that it constitutes an overreach of executive authority and unfairly benefits certain groups of borrowers over others.
Despite the ongoing debate, student loan forgiveness remains a significant issue for many young voters, particularly as they assess Biden’s broader policy agenda and approach to economic issues.
With roughly half of federal student loan debt held by individuals with graduate degrees, the impact of these measures extends beyond undergraduate borrowers, highlighting the complexities surrounding student debt in the United States.
