July 25, 2021

Targeted Student Loan Cancellation Has Been Biden’s Focus—Here’s Why

Targeted Student Loan Cancellation Has Been Biden’s Focus—Here’s Why


This has been President Joe Biden’s approach to student loan cancellation.

Here’s what you need to know — and what it means for your student loans.

Student Loans

Since becoming president in January, Biden has cancelled $3 billion in student loans. Biden has been focused on targeted student loan cancellation, which means that Biden has cancelled student loans for certain constituent groups that have a specific and indentifiable reason to get student loan cancellation. In some cases, these student loan borrowers got full student loan cancellation, and in other cases they got partial student loan cancellation. For example:

  1. Biden cancelled $500 million of student loan debt for 18,000 student loan borrowers under the borrower defense to student loan repayment rule.
  2. Biden cancelled $1 billion of student loans for 72,000 student loan borrowers.
  3. Biden cancelled another $1.3 billion of student loans for 41,000 borrowers with total and permanent disability.
  4. Biden granted student loan relief for 1.1 million student loan borrowers who defaulted on their FFELP Loans.

Here are 3 reasons why Biden has focused on targeted student loan cancellation:




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