WASHINGTON (CN) — President Joe Biden on Wednesday wiped out another $7.7 billion in student loan debt for 160,000 people.
Biden’s latest tranche of debt relief brings the total amount of debt forgiveness under his administration to $167 billion for nearly 4.8 million people.
“From day one of my administration, I promised to fight to ensure higher education is a ticket to the middle class, not a barrier to opportunity,” he said in a statement. “I will never stop working to cancel student debt — no matter how many times Republican elected officials try to stop us.”
Student loan forgiveness was one of Biden’s 2020 campaign promises. Last year, he tried to forgive up to $20,000 in debt for tens of millions of borrowers who met certain income limits, but the program was blocked by the U.S. Supreme Court.
Since then, Biden has used other targeted forgiveness plans to cancel debt.
The majority of those receiving relief Wednesday, 66,900 people, will benefit from the Public Service Loan Forgiveness program which can cover loans for people who have made 10 years of payments and worked for 10 years in public service jobs. Biden relaxed the program’s rules in 2022 to provide an easier path to forgiveness.
The program is facing a legal challenge from 18 Republican-led states.
“As Republicans keep trying to block these actions, Democrats will continue fighting to lift the weight of student debt & deliver for working people,” Washington Representative Pramila Jayapal wrote online.
Republicans have decried the forgiveness plans as a waste of taxpayer money and a burden on people who didn’t go to college or paid back their loans.
“Not only is Biden's student loan bailout unconstitutional (per SCOTUS) but it's also completely unfair to the American people,” Florida Representative Byron Donalds wrote online.
Officials said 54,300 people will receive relief through the Saving on a Valuable Education repayment plan, which ties payments to earnings and family size.
The remaining debt relief applies to 39,200 people on income-driven repayment plans, which make borrowers eligible for forgiveness after making 240 or 300 monthly payments, the equivalent of 20 or 25 years.
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