Student Loans Forgiven for Low-Income and Middle-Class Borrowers

In May 2024, President Joe Biden announced the cancellation of $7.7 billion in student debt for 160,000 borrowers. This relief includes nearly 67,000 borrowers eligible through the Public Service Loan Forgiveness program, about 54,000 in a new income-driven repayment plan, and 39,200 in earlier plans. The administration has steadily forgiven debt as more individuals qualify. 

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Biden emphasized his commitment to making higher education accessible, stating, "I will never stop working to cancel student debt—no matter how many times Republican-elected officials try to stop us." So far, $167 billion in student debt has been canceled for 4.75 million Americans.

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Education Secretary Miguel Cardona noted that one in ten federal student loan borrowers have received some form of relief, underscoring the administration's persistence in providing financial relief.

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Biden recently proposed a new mass cancellation plan after the Supreme Court rejected his initial attempt, which aimed to erase up to $20,000 in federal loans for those earning below $125,000 or couples earning less than $250,000. The Court ruled Biden overstepped his authority. The new plan, using different legal grounds, targets five borrower categories in greatest need, offering relief to about 30 million borrowers. Republicans criticized the plan's $127 billion cost.