Biden administration announces student debt relief

Published: Oct. 5, 2023 at 3:19 PM EDT

WASHINGTON (Gray DC) -Tens of millions of Americans will resume payment of their student loans in October. Wednesday, President Biden announced an Education Department program that will provide debt cancellation for more than 125,000 borrowers.

President Joe Biden announced debt relief for over 125,000 borrowers. The White House says it will amount to $9 billion in debt forgiveness.

“This kind of relief is life changing for individuals and their families, but it’s good for our economy as well,” said President Biden, adding, “by freeing millions of Americans from the crushing burden of student debt, it means they can go and get their lives in order.”

The student loan cancellations will be enacted through three different pre-existing debt relief programs. The Education Department will take the lead in managing the cancellations programs.

The President said that the Administration’s total debt cancellation now amounts to $127 billion for nearly 3.6 million student loan borrowers.