The Biden administration is set to forgive $4.8 billion in student loan debt for 80,300 borrowers

The Biden administration is set to forgive $4.8 billion in student loan debt for 80,300 borrowers, per CNBC.

The student debt relief is a consequence of the U.S. Department of Education's adjustments to its income-driven repayment plans and Public Service Loan Forgiveness program.

U.S. Secretary of Education Miguel Cardona emphasized the transformative impact of these changes, stating, "Before President Biden took office, it was virtually impossible for eligible borrowers to access the student debt relief they rightfully earned. This level of debt relief is unparalleled, and we have no intention of slowing down."

A substantial portion of the aid, over $2 billion, will be directed to nearly 46,000 borrowers enrolled in income-driven repayment plans. While these plans are designed to lead to debt forgiveness after a specific period, challenges arose as loan servicers often failed to accurately track borrowers' payments.

Additionally, the U.S. Department of Education highlighted that 34,400 borrowers who have dedicated a decade or more to public service will benefit from $2.6 billion in loan cancellation. The Public Service Loan Forgiveness program participants have encountered difficulties in securing the promised debt erasure due to errors in payment counts and other issues.

With this latest action, the Biden administration has now cancelled approximately $132 billion in student debt for more than 3.6 million Americans.

The move is expected to play a significant role in President Joe Biden's reelection bid, according to higher education expert Mark Kantrowitz. Kantrowitz noted, "Biden has forgiven more student loan debt than any previous president," setting him apart from other candidates.

It's worth mentioning that Republican nominees for president generally oppose student loan forgiveness. Former New Jersey Gov. Chris Christie argued that Biden lacked the authority to cancel student debt without prior authorization from Congress. Former President Donald Trump, in alignment with the Supreme Court, expressed concerns about wiping out a significant amount of student loan debt, characterizing it as unfair to those who diligently paid off their debts through hard work.