Biden Administration Approves $5 Billion In Student Debt

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(Scypre.com) – The White House announced on Friday that the Biden administration has approved an additional $5 billion in debt cancellation for approximately 74,000 student loan borrowers.

President Biden emphasized that many of the beneficiaries, including public sector workers like teachers and firefighters, will see their debt erased after 10 years of public service. He noted that nearly 30,000 borrowers impacted had been in repayment for at least 20 years without receiving relief through income-driven repayment plans.

This latest round of student debt cancellation brings the total amount canceled under Biden to $136.6 billion for more than 3.7 million Americans, according to the Department of Education.

The approval comes after the U.S. Supreme Court blocked Biden’s initial student loan relief plan last year, which had a projected cost exceeding $400 billion.

President Biden stated, “From Day One of my Administration, I vowed to improve the student loan system so that higher education provides Americans with opportunity and prosperity, not unmanageable burdens of student loan debt.” He expressed determination to utilize every available tool to provide relief to student loan borrowers.

The additional debt cancellation is attributed to adjustments made by the Biden administration to the income-driven repayment forgiveness and Public Service Loan Forgiveness programs. U.S. Secretary of Education Miguel Cardona highlighted the administration’s efforts to address the flaws in the student loan system and provide relief to borrowers who deserve forgiveness.

Last week, President Biden took action for student loan borrowers enrolled in the Savings on Valuable Education (SAVE) plan. Borrowers in SAVE who borrowed less than $12,000 and have been in repayment for 10 years will have their remaining debts zeroed out next month.

The Penn Wharton budget model estimates a net cost of $475 billion for SAVE over the 10-year budget window.

In December, Biden approved an additional $4.8 billion in student debt cancellation for over 80,000 borrowers. However, Republicans have criticized these initiatives, arguing that taxpayers will bear the financial burden, contributing to the national debt, which stands at $34 trillion.

House Education Committee Chairwoman Virginia Foxx expressed skepticism and criticized the administration’s approach, calling for fiscal common sense.

2 thoughts on “Biden Administration Approves $5 Billion In Student Debt

  1. My grandson who I feed on my fixed income. We live on potatoes etc. , 22 years old and he is doing his best to be responsible and repay, for his one year. He really can not afford.

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