President Biden announced the cancellation of an additional $1.2 billion in student loan debt for about 153,000 borrowers on Wednesday, his latest attempt at student debt relief after the Supreme Court blocked a more expansive plan last year.
Mr. Biden has now canceled $138 billion in student debt for nearly 3.9 million borrowers through about a dozen executive actions, according to the White House. Wednesday’s action comes as some Democrats have urged Mr. Biden to highlight his success in debt relief to galvanize critical constituencies, including young voters and black borrowers who disproportionately shoulder student loan debt.
Since the Supreme Court blocked Mr. Biden’s ambitious plan to cancel $400 billion in debt for about 43 million borrowers, the White House has used several smaller programs to write off debt for specific groups.
The latest round of cancellations benefits those enrolled in the income-based repayment program, known as SAVE, which opened for enrollment in August. It lowers monthly payments and shortens the life of loans for millions of borrowers. The government is scrambling to ensure Mr Biden gets credit for the cancellation, with affected borrowers set to receive an email from Mr Biden on Wednesday informing them their debt will be written off this week.
“This shortened time for forgiveness will especially help community colleges and other borrowers with smaller loans and put many on track to get rid of student debt faster than ever before,” the administration said in a statement.
Borrowers who participated in the SAVE program who originally borrowed up to $12,000 and made at least 10 years of qualifying monthly payments will have their debt completely forgiven. As part of this effort, the administration accelerated its plans to shorten the terms of the loan. the changes were set to take effect in July.
The announcement Wednesday morning comes at an opportune time for Mr. Biden as he works to energize voters during a fundraising trip to California.
