student loans

President Biden To Forgive $7.4 Billion In Student Loan Debt For More Than 270,000 Borrowers

President Biden’s administration announced last week that it will be using existing student loan forgiveness programs to cancel more student loan debt. They’re planning on forgiving $7.2 billion for around 277,000 borrowers, according to reports.

The Department of Education has seemingly made it easier for groups like public sector workers to qualify for loan forgiveness. The administration also launched a repayment plan to make it easier for low-income borrowers to pay back their loans. 

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The Biden administration has authorized, in total, the $153 billion in student loan debt cancellation for around 4.3 million people; more than 9% of all outstanding federal student loan debt. 

The Biden administration has eagerly been showing how much student loan debt they’re canceling especially due to the election in November. Around $3.6 billion of student loan debt relief will be delivered to individuals enrolled in the SAVE plan. 

“Republicans in 18 states want to prevent their own constituents from benefiting from the SAVE plan. They want to end SAVE, make their constituents’ payments go up and keep them under mountains of loan debt with no end in sight,” said White House press secretary Karine Jean-Pierre.

The SAVE plan launched last year and around 8 million borrowers have enrolled with about 360,000 people getting their remaining debt canceled.

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Biden has previously attempted to implement a student loan forgiveness program in 2022, however, it was rejected by the Supreme Court before it could actually deliver any debt relief. 

Biden has, however, canceled more student loan debt than any other president, and he’s mainly been utilizing existing programs. The administration has used the existing programs but made it easier to access for more US citizens. 

“Since the fall, the Biden administration has been working on set of new proposals, based on a different legal authority, to deliver relief to certain groups of borrowers.
For example, those whose student loan balances are bigger than what they initially borrowed could see their accumulated interest wiped way,” wrote Katie Lobosco for CNN

“Those proposals have yet to be finalized, but some could go into effect as soon as this fall, according to administration officials.”