Biden rolls out another $7.4B in student loan debt ‘forgiveness’ while lawsuits pile up

The Biden administration announced Friday plans to "cancel" another $7.4 billion in federal student loan debt for 277,000 borrowers, despite a growing pile of lawsuits.

According to the White House, the current administration has approved $153 billion in so-called student loan “forgiveness.” Some cancellations were rolled out as part of its Saving on a Valuable Education Plan, a new income-driven repayment plan that sets monthly payments based on borrowers’ income. Approximately 8 million borrowers are enrolled in the program, more than half of whom have had their monthly payments dropped to $0. More than 1 million others enrolled in the SAVE Plan pay less than $100 per month.

After the Supreme Court rejected Biden’s attempt to provide sweeping debt cancellations last year, the administration has ignored the ruling by announcing many smaller, similar plans to wipe out debt for borrowers. Following the court’s ruling, Biden reaffirmed his commitment to canceling student loan debt.

“This latest round of debt cancellation comes on the heels of President Biden announcing new plans that, if implemented, would cancel student debt for over 30 million Americans when combined with actions the Administration has taken over the last three years. This week’s announcements reinforce the President’s commitment to using every path available to deliver student debt relief to as many borrowers as possible through various actions,” the White House stated Friday.

The latest round of cancellations impacts borrowers enrolled in Biden’s SAVE Plan, other income-driven repayment plans, and individuals receiving Public Service Loan Forgiveness.

Republican lawmakers have slammed the administration’s plan, stating that it passes the debt along to American taxpayers. Over the last several weeks, Republican attorneys general have filed two separate lawsuits against the White House, claiming that the debt cancellations are illegal.

Kansas Attorney General Kris Kobach and 10 other states sued the administration in March, accusing Biden of ignoring the Supreme Court’s June ruling against debt cancellations.

The Biden administration’s Education Department responded to the complaint, stating, “The Department does not comment on pending litigation. However, Congress gave the U.S. Department of Education the authority to define the terms of income-driven repayment plans in 1993, and the SAVE plan is the fourth time the Department has used that authority.”

“The Biden-Harris Administration won’t stop fighting to provide support and relief to borrowers across the country – no matter how many times Republican elected officials try to stop us,” it added.

On Tuesday, an additional seven states, led by Missouri Attorney General Andrew Bailey, filed a separate lawsuit for the Biden administration’s attempts to circumvent the court’s decision.

Bailey called the programs Biden’s “embarrassing attempt to buy the 2024 election in direct violation of the law.”

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