The Biden administration announces another round of student loan debt relief, bringing the total number of Americans with forgiven loans to 4.75 million.
The Biden administration has announced the approval of an additional $7.7 billion in student loan debt forgiveness, bringing the total debt canceled since President Biden took office to $167 billion. This latest move is part of an ongoing effort by the president to alleviate the financial burden on millions of student loan borrowers.
This initiative has been met with both praise and criticism. Advocates argue that the debt relief provides much-needed support to individuals struggling with escalating student loan debt. Conversely, critics contend that the cancellation is unfair, alleging that President Biden is using these measures to garner support ahead of the 2024 election.
On Wednesday, the administration approved debt forgiveness for 160,500 borrowers, increasing the total number of Americans who have benefited from student loan debt cancellation to 4.75 million. The latest round of debt relief includes those who have qualified for Public Service Loan Forgiveness, enrolled in Biden’s Saving on a Valuable Education (SAVE) plan, and those eligible for changes to the income-driven repayment (IDR) plan.
The Biden administration states that over one in ten federal student loan borrowers have received some form of debt relief. Education Secretary Miguel Cardona emphasized the administration’s commitment, saying, “The Biden-Harris Administration remains persistent about our efforts to bring student debt relief to millions more across the country, and this announcement proves it.” He added that this means financial breathing room and a significant burden lifted for one in ten borrowers.
Despite the Supreme Court blocking the administration’s initial plan to cancel student loan debt nearly a year ago, the Biden administration has persisted. After the original effort was thwarted, the administration opted for a more methodical rule-making process to achieve its goals. Last summer, President Biden introduced the income-driven SAVE plan. To date, over eight million borrowers have benefited from this plan, including 4.6 million who now have $0 monthly payments.
However, this effort has faced legal challenges. More than a dozen Republican state Attorneys General have filed lawsuits aiming to halt the Biden administration’s latest debt relief measures. They argue that the burden of student loan debt is being unfairly transferred to taxpayers who did not incur such debts or who did not pursue expensive college degrees.
The cost of the SAVE plan has been a point of contention. The Biden administration previously estimated the plan would cost $156 billion over a decade. In contrast, the Congressional Budget Office projected a higher figure, closer to $230 billion.
Borrowers included in Wednesday’s round of debt forgiveness will receive email notifications confirming their approval. The Education Department has indicated that the cancellations will be processed in the coming weeks.
This series of debt forgiveness initiatives represents a significant aspect of Biden’s broader education policy. The administration argues that these measures are essential for providing relief to millions of Americans, enabling them to better manage their finances and contribute more effectively to the economy. Critics, however, maintain that these efforts are fiscally irresponsible and unfair to those who have repaid their loans or avoided taking on significant debt.
As the debate continues, the Biden administration shows no signs of slowing down its push for student loan debt relief. The issue remains a polarizing topic, with strong opinions on both sides. Supporters see it as a necessary intervention to address the student debt crisis, while detractors view it as a politically motivated move that imposes unfair burdens on taxpayers.
In the coming months, the outcomes of the ongoing legal challenges and the implementation of the latest round of debt forgiveness will significantly shape the future of student loan policy in the United States. Whether these efforts will ultimately succeed in providing sustainable relief to borrowers or face further setbacks remains to be seen. One thing is clear: the Biden administration is determined to pursue its vision of alleviating student loan debt for millions of Americans.
