The Biden administration continues to make strides in canceling student loan debt, with the recent announcement of canceling loans for an additional 160,000 borrowers. This move is part of the administration’s efforts to support higher education as a pathway to the middle class, rather than a barrier to opportunity. President Joe Biden, in a statement, reiterated his commitment to canceling student debt and ensuring financial relief for millions of Americans.
The latest round of loan cancellations will total $7.7 billion in federal student loans, bringing the total amount of student debt canceled to $167 billion for nearly 5 million borrowers. The relief will benefit borrowers enrolled in Biden’s new income-driven repayment plan, as well as those in previous income-driven plans and the Public Service Loan Forgiveness program.
Biden’s new payment plan, known as the SAVE Plan, offers a faster path to loan forgiveness, with more borrowers reaching eligibility for cancellation after 10 years of payments. Despite legal challenges from Republican-led states, the administration is moving forward with its efforts to provide financial relief to borrowers through existing programs.
In addition to the ongoing loan cancellations, the Biden administration is also pushing for a new, one-time cancellation that would help more than 30 million borrowers in various categories. This plan aims to assist borrowers with large amounts of unpaid interest, those with older loans, and individuals facing financial hardships that prevent them from repaying their loans.
While conservative opponents have raised concerns about the new plan, citing potential benefits for wealthy college graduates at the expense of taxpayers, the administration is determined to provide relief to those in need. The Supreme Court’s rejection of Biden’s earlier attempt at one-time cancellation has led to the development of a new plan with a different legal justification.
As the administration continues to work towards providing financial relief to student loan borrowers, the Education Department reports that 1 in 10 federal student loan borrowers have now been approved for some form of loan relief. Education Secretary Miguel Cardona emphasized the significance of this relief, noting that it provides much-needed financial breathing room for borrowers facing the burden of student loan debt.
Overall, the Biden administration’s efforts to cancel student loans through existing programs and push for new forms of relief demonstrate its commitment to addressing the student debt crisis and supporting Americans in their pursuit of higher education and financial stability.
