Biden announces another $7.7 billion in student loan cancellation

President Joe Biden has announced another $7.7 billion in student loans will not need to be repaid, with those who stand to benefit having an average of $35,000 in debt written off.

“Today, my administration is canceling student debt for 160,000 more people, bringing the total number of Americans who have benefitted from our debt relief actions to 4.75 million,” Biden said in a prepared statement.

The president said the new round is for loanees enrolled in the Department of Education’s new SAVE Plan, public service workers such as teachers, nurses, and police officers, or people who had loans canceled due to what the administration describes as “fixes” to existing income-driven repayment plans.

It’s part of a labyrinth of various moves Biden has made toward canceling student loans before the 2024 election. The nonpartisan Committee for a Responsible Federal Budget estimates the combined total cost to taxpayers could reach $1.4 trillion, with GOP-led states launching lawsuits claiming the president has no legal authority to spend money without Congress.