April 12 (UPI) — President Joe Biden announced on Friday that his administration will cancel student debt for 277,000 more borrowers.
This round of forgiveness focuses on borrowers enrolled in Biden’s SAVE Plan as well as other Income-Driven Repayment plans and those receiving Public Service Loan Forgiveness and is expected to clear $7.4 million in student debt, the White House said.
The Department of Education said $3.6 billion will be relieved for nearly 206,800 borrowers through the SAVE Plan, who have made at least 10 years of payments on loans of $12,000 or less for postsecondary studies.
Another $3.6 billion for 65,800 borrowers through administrative adjustments to the IDR payments, and $300 million for 4,600 borrowers through additional fixes to the Public Service Loan Forgiveness program.
“Today’s announcement shows, once again, that the Biden-Harris administration is not letting up on its efforts to give hardworking Americans some breathing room,” said Education Secretary Miguel Cardona in a statement.
“As long as people with overwhelming student loan debt compete with basic needs such as food and healthcare, we will remain relentless in our pursuit to bring relief to millions across the country.”
The administration said some eight million borrowers have already enrolled in Biden’s SAVE plan, with more than a million having monthly payments of less than $100. The White House said the SAVE Plan puts borrowers on faster debt relief after at least 10 years.
“From day one of my administration, I promised to ensure higher education is a ticket to the middle class, not a barrier to opportunity,” Biden said in a statement. “I will never stop working to cancel student debt — no matter how many times Republican elected officials try to stop us.”
The SAVE plan was established after one of Biden’s core campaign promises to eliminate student debt was derailed after the U.S. Supreme Court last year ruled his original sweeping debt relief plan unconstitutional.
Last month, 11 Republican-led states filed a lawsuit against the Biden administration’s efforts for student debt relief, saying what they are doing is nothing more than an end-around run by Congress, with violates the Supreme Court ruling against its original plan.
Biden on Monday announced a new student debt forgiveness plan aimed at borrowers who owe more than they did when they started repaying their loans that are eligible for forgiveness but haven’t applied as well as those who entered repayment 20 or more years ago, those enrolled in low-financial-value programs and those facing hardship paying back their loans.
The White House said that plan would bring the total of borrowers granted relief under the Biden administration to 30 million.