Biden erases $1.2B more in student loan debt
OAN’s James Meyers
7:54 AM – Wednesday, February 21, 2024
The Biden administration has announced they are canceling another $1.2 billion in student loan debt for over 150,000 borrowers, six months ahead of schedule.
President Joe Biden activated a Savings on Valuable Education (SAVE) plan policy, which cancels debt for enrolled borrowers who have been in repayment for at least 10 years and have $12,000 or less in student debt loans.
People with larger debts will receive relief after each additional year of payments for every additional $1,000 they borrowed.
“This shortened time to forgiveness will particularly help community college and other borrowers with smaller loans and put many on track to being free of student debt faster than ever before,” the White House said in a statement. “Under the Biden-Harris Administration’s SAVE plan, 85 percent of future community college borrowers will be debt free within 10 years.”
Meanwhile, Biden has now wiped away $138 billion in federal student loans from almost 4 million borrowers without a single act of Congress.
“From Day One of his Administration, President Biden vowed to fix the student loan system and make sure higher education is a pathway to the middle class — not a barrier to opportunity,” the White House said.
According to the White House, the almost 153,000 borrowers will receive an email informing them of the latest relief issued by Biden.
Additionally, the U.S. Department of Education will start contacting borrowers who are not enrolled in the SAVE plan but who are eligible for relief to convince them to sign up.
Since Biden has taken office, the administration has approved $56.7 billion in debt cancelation for over 793,000 borrowers through the Public Service Loan Forgiveness (PSFL) program; $45.6 billion for 930,500 borrowers through improvements to income-driven repayment; $11.7 billion for 513,000 borrowers with a total and permanent disability; and $22.5 billion for 1.3 million borrowers through closed school discharges.
“With today’s announcement, we are once again sending a clear message to borrowers who had low balances: if you’ve been paying for a decade, you’ve done your part, and you deserve relief,” said Secretary of Education Miguel Cardona. “Under President Biden’s leadership, our Administration has now approved loan forgiveness for nearly 3.9 million borrowers, and our historic fight to cancel student debt isn’t over yet.”
However, Republicans have been against the Biden administration’s student debt loan forgiveness, arguing that the taxpayers will ultimately have to pay for it in the long run.
Stay informed! Receive breaking news blasts directly to your inbox for free. Subscribe here. https://www.oann.com/alerts
Julian Assange appeals his extradition to the U.S., Two adults are charged in the Kansas City Parade shooting and the Red Cross gives a Disclaimer for vaccinated blood.
The Biden Administration’s open border policies have wreaked havoc on border communities.
Soft on Crime prosecutors are creating safety concerns in New York.
A new Fox News poll shows President Trump leading President Joe Biden in the crucial swing states of North Carolina.
The first human patient implanted with a brain-chip from Neuralink appears to have fully recovered.
A group of 20 tech companies announced they will work together to prevent deceptive AI content from interfering with elections.
OpenAI is working on a software that can generate minute-long videos based on text prompts.
Activision Blizzard has been hit with a U.S. lawsuit claiming it restricts competition for organized gaming involving “Call of Duty.”
rnrn
How do supporters of the Biden administration’s actions defend the cancellation of student loan debt?
Expressed criticism of the Biden administration’s decision to cancel student loan debt. They argue that it unfairly rewards borrowers who took on large amounts of debt and failed to repay it. Additionally, they believe that the government should not be intervening in the student loan market and that individuals should be responsible for repaying their own debts. Some Republicans have even called for stricter eligibility criteria for loan forgiveness, suggesting that it should only be available to those facing extreme financial hardship.
On the other hand, supporters of the Biden administration’s actions argue that student loan debt has become a burden for many Americans and is holding them back from achieving financial stability. They believe that canceling debt for those who have made consistent payments over a significant period of time is a fair and necessary step towards relieving the strain of student loans. They also assert that the government has a responsibility to address systemic issues within the education system that have led to astronomical student loan debt in the first place.
Regardless of political opinions, the fact remains that student loan debt is a pressing issue in the United States. According to the Federal Reserve, Americans collectively owe over $1.7 trillion in student loan debt, with the average borrower owing around $32,731. This level of debt not only hinders individuals from pursuing other financial goals such as buying a home or starting a family, but it also has broader economic implications.
Canceling student loan debt may help stimulate the economy by freeing up resources for individuals to invest in other areas, such as purchasing goods and services or starting businesses. It could also alleviate the financial stress that many borrowers face, allowing them to contribute more to the economy through increased spending and productivity.
However, it is important to consider the long-term consequences of canceling student loan debt. Critics argue that it sets a precedent where individuals may feel less inclined to take responsibility for their financial obligations, potentially leading to moral hazard. They also warn that the cost of canceling student loan debt will ultimately fall on taxpayers, who may have had no involvement in the borrowing or lending process.
In conclusion, the Biden administration’s decision to cancel $1.2 billion in student loan debt for over 150,000 borrowers has sparked a debate about the role of government in addressing the student loan crisis. While some criticize the move as unfair and unsustainable, others see it as a necessary step towards relieving the burden of student loans and stimulating the economy. As the discussion continues, it is crucial to consider both the short-term benefits and long-term implications of canceling student loan debt in order to find a sustainable and equitable solution to this pressing issue.
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases
Now loading...