Biden administration approves $5 billion in debt cancelation for thousands of borrowers

The Biden administration on Friday announced that it had approved $5 billion in debt cancelation for about 74,000 student loan borrowers.

"From Day One of my Administration, I vowed to improve the student loan system so that a higher education provides Americans with opportunity and prosperity — not unmanageable burdens of student loan debt," Biden said in a statement, according to Fox Business. 

"I won’t back down from using every tool at our disposal to get student loan borrowers the relief they need to reach their dreams," he added.

Those qualified to benefit from the $5 billion in debt relief include teachers, social workers and other public servants, according to President Biden. 

"The Biden-Harris Administration has worked relentlessly to fix our country's broken student loan system and address the needless hurdles and administrative inaccuracies that, in the past, kept borrowers from getting the student debt forgiveness they deserved," U.S. Secretary of Education Miguel Cardona said.

Student loan forgiveness was a huge issue for Biden in 2020 when he ran for president, and some still don't think he is doing enough. 

This latest debt cancellation brings the total by the Biden administration to $136.6 billion for more than 3.7 million Americans, according to the Department of Education. The U.S. Supreme Court blocked Biden's original attempt to cancel student loan debt, which would have cost taxpayers more than $400 billion. 

One in 10 borrowers have admitted to skipping their payment deadlines to pressure Biden into canceling the debt, according to The Washington Times.

Some financial experts have said the boycott could have negative results.

“Although the frustration behind the student loan boycott is understandable, it’s unlikely to lead to positive change,” Jake Hill, founder and CEO of DebtHammer said, according to the outlet. “Instead, it will destroy credit scores of those who choose to participate.” 

"President Biden is downright desperate to buy votes before the election — so much so that he greenlights the Department of Education to dump even more kerosene on an already raging student debt fire," said House Education Committee Chairwoman Virginia Foxx, R-N.C., in a statement, according to Fox Business.