As of 2024, federal student loan debt totaled approximately $1.6 trillion, owed by roughly 43 million borrowers, according to the Department of Education.
In June 2023, the Supreme Court struck down the Biden administration's plan to cancel up to $20,000 per borrower in Biden v. Nebraska, ruling 6-3 that the HEROES Act did not authorize the program.
The Congressional Budget Office estimated the struck-down plan would have cost approximately $400 billion over 30 years.
Supporters argue forgiveness would boost consumer spending and address racial wealth gaps; critics argue it shifts costs to taxpayers who did not attend college and does not address rising tuition.
The Public Service Loan Forgiveness program, created in 2007, has discharged debt for over 1 million borrowers working in government or nonprofit jobs as of 2024.