Biden Cancels Student Debt for 160K People Amounting to $7B

The Biden administration last week announced that it approved another $7.7 billion student debt bailout, bringing the total amount of student debt “forgiven” by the administration to $167 billion.

The president’s efforts to bypass the 2023 Supreme Court ruling that blocked his plan to offer student debt “forgiveness” has now cost US taxpayers more than the $165.6 billion the US Army requested in its 2024 budget.

Those who qualify for the most recent bailout include public servants such as teachers or police officers, as well as tens of thousands who enrolled in income-based repayment programs, like the president’s new SAVE program.

The latest effort will bail out student loan debt for roughly 160,500 borrowers, including 66,900 through the Public Service Loan Forgiveness program, 39,200 borrowers with income-based repayment plans, and 54,300 enrollees from the SAVE repayment program.

According to a May 21 news release from the US Department of Education, so far, the Biden administration has “forgiven” the student debt of 4.75 million borrowers.

Education Secretary Miguel Cardona said in the news release that 10 percent of all student loan borrowers have had their debt “forgiven” by the administration.

The president’s latest debt bailout comes as his reelection campaign struggles to maintain its support among younger voters, the voting bloc that played a key role in Biden’s election victory four years ago.

According to a recent CNN poll, Biden has fallen 11 points behind presumptive Republican nominee Donald Trump among voters ages 18-34.

Biden initially proposed “forgiving” up to $20,000 in student loan debt per borrower just months before the 2022 Midterm Elections. However, the program was halted and later blocked in mid-2023 when the Supreme Court ruled that the president did not have the authority to “forgive” more than $500,000 in student loan debt.

According to the Department of Education, another student debt bailout covering roughly 30 million borrowers is expected to be finalized just weeks before the 2024 election.