Another $7.7 million in student debt is going to be cancelled thanks to the Biden administration.
The debt cancellation will affect 160,000 and will bring the total to $167 billion in loans cancelled for about 5 million borrowers, per the Associated Press.
The announcement was made Wednesday by the Department of Education.
“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,” President Joe Biden said. “I will never stop working to cancel student debt — no matter how many times Republican-elected officials try to stop us.”
The borrowers will need to git into one of three categories to be eligible.
These are 54,000 who are a part of Biden’s newest income-driven repayment plan, 39,000 in previous income-driven plans and approximately 67,000 who qualify through the Public Service Loan Forgiveness program.
The SAVE Plan, the new payment plan, allows borrowers to repay quicker.
The new plans by the Biden administration have been met with resistance from Republican states such as 11 states headed by Kansas that sued in an attempt to block the plan in March. In April, seven more states, led by Missouri followed suit.
The states assert the repayment plans needed Congressional approval first.
A Department of Education official stated that 1 in 10 federal student loan borrowers have been affected by the plans.
“One out of every 10 federal student loan borrowers approved for debt relief means one out of every 10 borrowers now has financial breathing room and a burden lifted,” Education Secretary Miguel Cardona said.
