Biden cancels $9 billion in student debt for 125,000 borrowers

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The announcement is likely to help Biden as he runs for reelection, experts say. Getty Images

The announcement is likely to help Biden as he runs for reelection, experts say.

“Biden has forgiven more student loan debt than any previous president,” said higher education expert Mark Kantrowitz. It sets him apart from other candidates running for the nation’s top office. After that setback, Biden said he’d pursue other paths to deliver borrowers relief. Biden announced he would pursue other ways to provide relief to students. More recently, the Consumer Financial Protection Bureau estimated that 1 in 5 student loan borrowers could struggle with the resumption of payments.

Biden has also announced a 12-month “on-ramp” to repayment, during which borrowers will be shielded from the worst consequences of missed payments, including falling into a delinquent status.

The timeline is, in part, political, experts say, since the data on borrower hardship won’t be released until after the 2024 presidential election.