Biden touts $9B in loan forgiveness to reduce student debt

The White House announced $9 billion in student debt relief on Wednesday, which President Joe Biden praised.

Biden said at the White House that the additional relief, which will help 125,000 Americans, brings the Biden administration's debt cancellation to $127 billion for nearly 3.6 million Americans.

“This relief is life-changing for individuals and their families and good for our economy. Freeing millions of Americans from student debt lets them get their lives in order, Biden said.

The announcement comes days after federal student loan repayments resumed for the first time in over three years after the Supreme Court rejected Biden's pandemic-era debt relief plan in June, which sought to cancel up to $20,000 in student debt for 43 million eligible borrowers.

The White House said the $9 billion provides $5.2 billion in debt relief for 53,000 Public Service Loan Forgiveness beneficiaries.

The release stated that nearly $2.8 billion will be provided to 51,000 income-based repayment plan borrowers who made 20 years or more of payments but “never got the relief they were entitled to.”

The statement said 22,000 disabled borrowers will receive $1.2 billion.

After the Supreme Court invalidated Biden's plan to eliminate more than $400 billion in student debt, the president took other steps to reduce national debt.