In Los Angeles, President Joe Biden declared the forgiveness of an additional $1.2 billion in student loan debt for approximately 153,000 borrowers on Wednesday. This move represents his latest attempt at providing relief for student debt, following the Supreme Court’s rejection of a broader plan last year.
According to information from the White House, Biden has now eliminated $138 billion in student debt for nearly 3.9 million borrowers through around twenty-four executive actions.
The announcement on Wednesday comes at a time when some Democrats have urged Biden to emphasize his achievements in alleviating debt, aiming to mobilize important demographics such as young voters and Black borrowers who bear a disproportionate burden of student loan debt.
Following the Supreme Court’s blockage of Biden’s ambitious $400 billion debt cancellation plan for about 43 million borrowers, the White House has turned to various smaller initiatives to forgive debt for specific groups.
The recent wave of debt cancellation primarily benefits participants in the income-driven repayment plan known as SAVE, which became available for enrollment in August. This initiative reduces monthly payments and shortens the repayment period for millions of borrowers.
Efforts are underway within the administration to ensure that Biden receives recognition for the debt forgiveness. Affected borrowers are slated to receive an email from Biden on Wednesday, informing them that their debt will be wiped out this week.
The administration highlighted that this expedited forgiveness process will be especially beneficial for community college and other borrowers with smaller loans, enabling many to become debt-free sooner than anticipated.
Under this initiative, borrowers who enrolled in the SAVE plan and originally borrowed up to $12,000, and who have made at least 10 years of qualifying monthly payments, will have their debt completely erased. As part of this effort, the administration has advanced its plans to shorten loan terms, which were initially scheduled to take effect in July.
