Biden administration to cancel additional $7.7 billion in student loans: who is impacted

President Joe Biden announced on Wednesday a new round of student debt forgiveness, a decision that amounts to $7.7 billion in cancelled debt impacting some 160,000 borrowers.

The Education Department said that those reached are people who received Public Service Loan Forgiveness, among them teachers, nurses and law enforcement officials. 67,000 people who are part of this program will be forgiven a combined $5.2 billion.

The measures also applies for those who applied to an income-driven repayment plan known as SAVE and qualify for a benefit affording "shortened time-to-forgiveness." 54,000 borrowers who are part of this program will be forgiven $613 million.

Around 39,000 other borrowers receiving relief as a result of adjustments to income-driven repayments are impacted as well, getting a combined $1.9 billion in relief.

Education Secretary Miguel Cardona said in a statement that the administration "remains persistent" about its efforts "to bring student debt relief to millions more across the country."

Biden also highlighted the decision, saying "I will never stop working to cancel student debt — no matter how many times Republican elected officials try to stop us."

The announcement is part of a drive by the Biden administration to forgive student debt at relatively lower scales after the Supreme Court rejected a broad, nation-wide plan that would have canceled up to $20,000 for low and middle-income borrowers for an estimated total of $430 billion.

The Biden administration has been since announcing small measures that circumvent Congressional or court approval such as this one. The last one took place in early May, when the government forgave $6.1 billion to 317,000 people who attended The Art Institutes, for-profit schools that shut down last year amid allegations of fraud.

The government has now forgiven close to $170 billion to about 4.75 million students. Back then, it also announced a plan to provide student debt cancellation for over 30 million people. The measure would cancel up to $20,000 of accrued interest regardless of income.

Single people making less than $120,000 and couples making less than $240,000 enrolled in an income-driven repayment plan would have their interest forgiven. This relief is aimed at addressing the nation's $1.77 trillion in student debt.