President Biden Cancels $4.5 Billion in Student Debt

WASHINGTON (Reuters) – U.S. President Joe Biden on Thursday canceled another $4.5 billion in student debt for over 60,000 borrowers, bringing the total number of public service workers who had their student loans forgiven to over 1 million.

The cancellation is Biden's latest effort to fulfill his 2020 campaign pledge to provide debt relief to millions of Americans before he leaves office in January, although his efforts face legal challenges.

U.S. Vice President Kamala Harris, a fellow Democrat running for the White House after Biden steps aside and facing Republican Donald Trump in the November 5 election, stated she would continue to address education costs if elected, including relief for federal student loan users.

"While Republican elected officials do everything in their power to block millions of their own constituents from receiving this much-needed economic relief, I will continue our work to lower costs, make higher education more affordable, and relieve the burden of student debt," Harris said in a statement.

Wednesday's action brings the Biden-Harris Administration's total approved student loan relief to $175 billion for nearly 5 million borrowers, according to a White House statement. The administration has called the current student loan system "broken" and insists that debt relief is necessary to prevent borrowers from being financially burdened by their decision to pursue higher education.

Harris has centered her election campaign partly on her economic plans aimed at reducing living costs for middle- and lower-class Americans and boosting the overall economy, while Trump has focused on tariffs and tax cuts.

Republicans have criticized Biden's student loan forgiveness approach as an overreach of authority and an unfair advantage to college-educated borrowers, while others receive no such relief. Six Republican state attorneys general have challenged Biden's plan, arguing it is Congress's responsibility to provide relief through legislation. Earlier this month, a U.S. judge appointed by former President Trump temporarily blocked Biden from "mass canceling" student loans until the lawsuit is resolved.

Biden had to modify his approach after previous plans were blocked by the courts. In August, the U.S. Supreme Court declined to revive Biden's latest plan, bolstering Republicans aiming to stop it.