President Joe Biden on Friday said he is canceling $7.4 billion in student loans for about 277,000 borrowers as part of a new repayment plan, according to the White House and reports.
The latest round of cancellations by the administration brings the amount of debt forgiven to $153 billion for 4.3 million Americans, the White House said.
"From day one of my Administration, I promised to fight to ensure higher education is a ticket to the middle class, not a barrier to opportunity," Biden said in a statement, the Associated Press reported. "I will never stop working to cancel student debt - no matter how many times Republican elected officials try to stop us."
More than 206,000 borrowers enrolled in the Saving on a Valuable Education (SAVE) repayment plan that adjusts monthly loan payments to earnings and family size will have their debt canceled, the Washington Post reported.
Those in the plan who borrowed less than $12,000 are eligible to have their debt canceled after 10 years of payments, compared to the traditional 20 to 25 years in other plans, the report said.
Another 65,700 borrowers enrolled in the older income-driven repayment plans who have been repaying their loans for as much as 25 years will have their debt forgiven through a temporary waiver, the Washington Post reported.
The last 4,600 will have their debt canceled through the Public Service Loan Forgiveness program.
Education Secretary Miguel Cardona said the debt cancellation will provide much needed relief to millions of Americans.
"Now they have some money back in their pockets, instead of a bill that too often competed with basic needs like groceries and health care," he said, the AP reported.
