The Biden administration on Friday announced another expansion of the federal student debt relief program, declaring the cancellation of $7.4 billion in student loans for 277,000 Americans.
This initiative, unveiled on April 12, marks another move in the administration’s efforts to cancel student debt, totaling $153 billion in canceled debt for 4.3 million beneficiaries since taking office.
“This latest round of debt cancellation comes on the heels of President Biden announcing new plans that, if implemented, would cancel student debt for over 30 million Americans when combined with actions the Administration has taken over the last three years,” the White House said in a press release. “This week’s announcements reinforce the President’s commitment to using every path available to deliver student debt relief to as many borrowers as possible through various actions.”
The move is part of a broader strategy to provide relief to borrowers via multiple avenues, including reformed repayment plans and forgiveness programs.
Borrowers benefiting from Friday’s announcement include those enrolled in the Simplifying Access to Varied and Easy (SAVE) Plan and other Income-Driven Repayment (IDR) plans, as well as participants in the Public Service Loan Forgiveness (PSLF) program.
Last year saw the introduction of the SAVE Plan, which the administration touts as the most affordable repayment framework to date. Currently, the plan boasts enrollment figures of 8 million, with significant proportions of these participants paying minimal monthly sums, if any, according to the White House.
The administration is also pursuing new plans that, if implemented, would cancel student debt for tens of millions more.
On Monday, President Biden unveiled additional plans aimed at canceling or reducing student loan balances for millions of Americans after the Supreme Court struck down his large-scale debt forgiveness attempt last year.
This is a developing story and will be updated.
Emel Akan contributed to this report.
From The Epoch Times
