The Strategist

Biden cancels $1.2B in student debt

02/23/2024 - 02:20

Over 153,000 students have had their obligations for the $1.2 billion in federal education loans written off by US President Joe Biden.

U.S. Secretary of Defense
U.S. Secretary of Defense
One of the key agenda items for Joe Biden's presidential campaign was debt reduction. Mr. Biden has already signed more than twenty executive orders canceling student debts under the federal loan program during his time as President of the United States.

$138 billion worth of debt has been canceled off since yesterday's decree, affecting 3.9 million borrowers. The current figure already greatly surpasses the amount of debt forgiven by any of Joe Biden's predecessors, even though it is a far cry from his original plan of $400 billion in debt forgiveness for 43 million borrowers.

The US Supreme Court ruled in June of last year that Joe Biden and his inner circle had overreached their jurisdiction and prohibited the administration from canceling $400 billion in student loans. To get around the prohibition, the administration started writing off the debt in little installments. Americans owed over $1.74 trillion in federal and private student loan debt as of September 2023.