Biden Admin to Forgive Student Loans for 804K Borrowers with $39B ‘Fix’
The Biden Administration to Forgive $39 Billion in Student Loans for Over 800,000 Borrowers
The Biden administration has made a groundbreaking announcement, stating that it will forgive $39 billion in federal student loans for over 800,000 borrowers. This news was released by the Department of Education in a Friday news release.
The Department of Education explained that these loan discharges are a direct result of the Biden administration’s efforts to fix the income-driven repayment (IDR) plans. These plans are designed to make student loan debt more manageable by determining monthly payments based on the borrower’s income and family size.
Under these IDR plans, borrowers become eligible for loan forgiveness after making 20 or 25 years’ worth of monthly payments. The Department of Education stated that 804,000 borrowers will soon receive notifications regarding their loan forgiveness.
Addressing a Broken System
Secretary of Education Miguel Cardona emphasized that this move is a crucial step in addressing a “broken system.” He acknowledged that many borrowers have fallen through the cracks of an inefficient system that failed to accurately track their progress towards loan forgiveness.
Cardona stated, “By fixing past administrative failures, we are ensuring everyone gets the forgiveness they deserve, just as we have done for public servants, students who were cheated by their colleges, and borrowers with permanent disabilities, including veterans.”
This announcement comes after the Supreme Court struck down Biden’s plan to cancel $400 billion in student loan debt in June. The court ruled that the administration had exceeded its constitutional powers in making this decision.
Undeterred by this setback, President Biden expressed his determination to find alternative ways to provide relief to hard-working middle-class families. The solution came in the form of the Higher Education Act, signed by President Lyndon B. Johnson in 1965. This act grants the education secretary the authority to “compromise, waive, or release” student loans.
A Commitment to Further Relief
Vice President Kamala Harris joined President Biden in expressing their commitment to providing further relief to student loan borrowers. In a statement, Harris stated that they will not stop at forgiving $39 billion in student loan debt.
Harris said, “President Joe Biden and I are committed to delivering relief to student loan debt borrowers to help them move forward with their lives — whether they want to start a family, buy a home, or become an entrepreneur. Our Administration will continue to fight to make sure Americans can access high-quality postsecondary education without taking on the burden of unmanageable student loan debt.”
With this monumental decision, the Biden administration is taking significant steps towards alleviating the burden of student loan debt and providing a fresh start for hundreds of thousands of borrowers.
Read more: Biden Admin Announces Student Loan Forgiveness for 804,000 Borrowers via $39 Billion ‘Fix’
Source: The Western Journal
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