US President Joe Biden Cancels Additional $9bn in Student Loan Debt

President Joe Biden has approved an additional $9bn in student loan debt relief, adding it to the $127bn already provided under existing

programs. The move benefits 125,000 individuals and brings total debt relief under his administration up to 3.6 million, as reported by the White House. Included among this total are $5.2bn from Public Service Loan Forgiveness programs as well as $51m under income-driven repayment schemes; nearly 22,000 borrowers with permanent disabilities will also see their loans erased completely.

Since his appointment to office in 2021, Vice President Biden has been an outspoken proponent of student debt relief, vowing to use all tools at his disposal in helping students. Already he has initiated a plan that may lower monthly payments for some borrowers while working closely with Congress on additional proposals – including legislation that automatically enrolls borrowers into programs which could eventually wipe away their debt after 20 years of payments have been completed.

But President Trump is also exploring workarounds for his more ambitious student debt relief plans following a Supreme Court ruling against an executive order he issued last year that would have broadly cancelled up to $20,000 of student loan debt for millions of people. According to the court’s reasoning, mass student debt relief requires congressional approval while individual borrowers cannot have amounts cancelled without going through an extended approval process.

This latest debt relief comes as student loan borrowers return to paying into their student loan balances following a three-year pause due to COVID-19 pandemic. According to The White House, these new relief measures “make it possible for people to escape a broken system”, though only qualifying programmes may benefit.

Saving on a Valuable Education is a new program created by the government and Congress that will forgive some or all of a borrower’s remaining loan principal after 20 years of on-time payments. Furthermore, both entities are working together to expand the Public Service Loan Forgiveness programme that already offers loan forgiveness to public service workers such as teachers and social workers.

Debt relief advocates have welcomed President Obama’s recent announcement of income-driven repayment programmes as another attempt at mitigating an emerging debt crisis. Also earlier this week, income-driven repayment programs were revamped so borrowers have greater flexibility and predictable monthly payments.

Student debt has reached over $1.8 trillion among 45 million Americans and most of it owes to federal student loans. As the costs associated with higher education continue to outstrip inflation, graduates find it increasingly difficult to repay their loans or cover basic living expenses after finishing their degrees – often being burdened by unmanageable interest rates as well.