Quick Hit:

The Biden administration has announced a new $7.7 billion student debt relief initiative for 160,000 borrowers, a move that has been criticized by Republicans as "unconstitutional" and an "election year giveaway."

Key Details:

The $7.7 billion relief package will benefit three categories of borrowers: those receiving Public Service Loan Forgiveness (PSLF), those enrolled in President Biden's Saving on a Valuable Education (SAVE) Plan, and those receiving forgiveness on income-driven repayment (IDR) due to administrative adjustments.
As of this announcement, the Biden administration has cleared more than $167 billion in student loan debt for 4.75 million Americans in what Trump campaign Senior Advisor Jason Miller described as "Billions more in election year giveaways."
Republicans have criticized the move as unconstitutional and unfair to the American people, with some citing a 2022 Supreme Court ruling that the Biden administration overstepped its authority when it announced it would cancel up to $400 billion in student loans.

Diving Deeper:

The Department of Education (DOE) has detailed the distribution of the $7.7 billion relief package, with $5.2 billion going to 66,900 borrowers through fixes to PSLF, $613 million for 54,300 borrowers through the SAVE Plan, and $1.9 billion for 39,200 borrowers through administrative adjustments to IDR payment counts.

Despite the Supreme Court ruling last year that the Biden administration overstepped its authority in announcing a massive student loan cancellation, the administration has continued to push for debt relief initiatives. These efforts have been met with resistance from Republican states, which have filed lawsuits challenging these initiatives. High-profile Republicans, including Florida Rep. Byron Donalds and Texas Sen. Ted Cruz, have publicly criticized the latest relief package as unconstitutional and unfair to the American people, with the latter saying on X Wednesday morning, "Joe Biden is completely lawless. From opening the southern border to illegally forgiving student loans, the Biden administration represents a complete and total breakdown of law and order."