Biden Announces Another Student Loan Bailout

President Biden on Wednesday announced his administration is bailing out 160,500 additional student loan borrowers, bringing the total number of Americans he’s helped at the expense of taxpayers up to 4.75 million.

“The Biden-Harris Administration remains persistent about our efforts to bring student debt relief to millions more across the country, and this announcement proves it,” said U.S. Secretary of Education Miguel Cardona in a statement. “One out of every 10 federal student loan borrowers approved for debt relief means one out of every 10 borrowers now has financial breathing room and a burden lifted.”

The latest move transfers $7.7 billion to taxpayers.

These discharges are for three categories of borrowers: those receiving Public Service Loan Forgiveness (PSLF); those who signed up for President Biden’s Saving on a Valuable Education (SAVE) Plan and who are eligible for its shortened time-to-forgiveness benefit; and those receiving forgiveness on income-driven repayment (IDR) as a result of fixes made by the Administration. This action comes as more than 8 million borrowers have been helped by the SAVE Plan. That includes 4.6 million with a $0 monthly payment.
Today’s announcement brings the total loan forgiveness approved by the Biden-Harris Administration to $167 billion for 4.75 million Americans. Thanks to this Administration’s efforts more than one out of every 10 federal student loan borrowers has now been approved for some debt relief. This action builds on President Biden and his Administration’s efforts to provide debt relief to as many borrowers as possible as quickly as possible. (Education Department)

We remain persistent in fixing a broken student loan system.

1 in 10 federal student loan borrowers have now received forgiveness, meaning these borrowers now have financial breathing room and a burden lifted.

And we’re not done yet. https://t.co/9GAoqgWclY
— Secretary Miguel Cardona (@SecCardona) May 22, 2024

The president was called out on X for the vote-buying scheme that transfers the financial burden onto hardworking taxpayers.

This is NOT a debt cancellation.

It’s a debt TRANSFER to the next generation.

Your children will foot the bill.

Biden’s debt transfer scheme means your children will have LESS money for their education, LESS money to buy a home, and LESS money to raise a family. https://t.co/CcJ1G2jluN
— Heritage Foundation (@Heritage) May 22, 2024

I worked hard to pay off my student loan, and now Biden is stealing money from me to give to people who didn't. https://t.co/TROSdUT0ZD
— Tony Heller (@TonyClimate) May 22, 2024