Biden Administration Cancels $4.5 Billion in Student Debt

President Joe Biden has canceled $4.5 billion in student debt, aiding over 60,000 borrowers. Overall, the administration has approved $175 billion in relief for nearly 5 million borrowers. However, Republicans criticize the move, and a federal judge has issued a preliminary injunction against mass loan cancellations.

In a significant move on Thursday, U.S. President Joe Biden announced the cancellation of an additional $4.5 billion in student debt, providing relief to over 60,000 borrowers. This decision adds to the Biden-Harris Administration's efforts, which have already approved a total of $175 billion in student debt relief, benefiting nearly 5 million borrowers.

However, this approach has faced criticism from Republicans, who argue that it constitutes an overreach of presidential authority and disproportionately benefits college-educated individuals while offering no relief to others. The controversy continues to brew as stakeholders debate the fairness and implications of the president's debt forgiveness strategy.

Complicating the situation further, U.S. District Judge Matthew Schelp, appointed by former President Donald Trump, recently issued a preliminary injunction. This legal decision temporarily blocks the administration's plans for mass loan cancellations, hinging on the outcome of a lawsuit filed by the state.

(With inputs from agencies.)