Biden Cancels $4.2 Billion in Student Loans for 150,000 Borrowers

WASHINGTON, Jan. 13 (Reuters) – President Joe Biden announced Monday that his administration will cancel student loans for more than 150,000 borrowers, including those defrauded by schools, individuals with permanent disabilities, and public service workers. This move brings the total number of Americans who have received student debt relief under Biden to over 5 million.

The latest round of relief, totaling $4.2 billion, includes nearly 85,000 borrowers who attended schools accused of fraudulent practices, 61,000 borrowers with permanent disabilities, and 6,100 public service workers. Biden emphasized that these actions are part of his administration’s commitment to addressing the student debt crisis.

Since taking office, the Biden administration has approved $183.6 billion in student loan forgiveness across 28 debt relief actions, according to the U.S. Education Department. However, the administration has faced significant legal challenges from Republicans and courts, particularly regarding broader debt relief plans that were a key campaign promise during Biden’s 2020 presidential run.

“We are continuing to deliver relief to borrowers who need it most,” Biden said in a statement. “This is about giving people a fair shot and ensuring that the system works for everyone.”

The announcement comes as the administration continues to navigate legal and political obstacles to its broader student debt relief agenda. Critics argue that such measures could have long-term economic implications, while advocates praise the administration for taking steps to alleviate financial burdens on vulnerable populations.