Joe Biden forgives $1.2 billion in student loans as White House battle looms

President Joe Biden's administration is making headlines by cancelling $1.2 billion in student loans for approximately 153,000 individuals as part of a program aimed at fulfilling promises to enhance debt forgiveness, The New York Post reported.

The move follows the Supreme Court's rejection of a broader $430 billion student loan forgiveness plan last June, prompting Biden to explore alternative approaches to address the issue.

The White House emphasises that this initiative will particularly benefit community colleges and other borrowers with smaller loans, expediting their path to freedom from student debt. 

Under the new repayment plan, individuals who initially borrowed $12,000 or less and have made payments for at least ten years will see their federal student loan balances forgiven.

Those registered in the SAVE program are expected to receive emails on Wednesday, notifying them of the $1.2 billion federal student loan debt forgiveness. 

As the presidential race gains momentum, Biden's administration aims to underscore its efforts in alleviating student loan debt, potentially using this cancellation as a strategic move to connect with voters.

The administration's commitment to addressing student loan challenges was reiterated in a statement: "From day one of my Administration, I vowed to fix student loan programs so higher education can be a ticket to the middle class—not a barrier to opportunity." 

Despite originally planning to start in July, the administration initiated the debt forgiveness process in February, accelerating its timeline.

While many federal loan debt cancellations predate Biden's presidency, his administration has surpassed others in cancellations, partly due to efforts to rectify past administrative issues and temporarily expand certain debt relief programs.