On Wednesday, the White House announced that an additional $9 billion will be allocated to payoff student loan debts which would affect approximately 125,000 borrowers.
In June, the Biden administration lost in a 6-3 Supreme Court verdict that they could NOT cancel student loan debts for non-Pell Grant and Pell Grant recipients. Even after the Supreme Court rendered their decision, the Biden administration still wanted to cancel student loan debts and moved forward by expanding income-driven repayment plans cutting payments for those who make at or below $32,800 to $0 annually. This directive to the Department of Education will potentially cost American taxpayers BILLIONS. In addition to that plan, the administration added on another $9 billion of relief based solely on income.
In a press release from the White House, “President Biden has long believed that college should be a ticket to the middle class, not a burden that weighs on families. That’s why from day one, his Administration has taken unprecedented steps to fix the broken student loan system, make college more affordable, and bring the promise of higher education in reach for more Americans.”
The program anticipates to relieve $5.2 billion in debt for 53,000 borrowers in a Public Service Loan Forgiveness program, $2.8 billion in debt for 51,000 borrowers via income repayment plan and $1.2 billion in debt for 22,000 borrowers with disabilities.
The Secretary of Education, Miguel Cardona said in a statement,“For years, millions of eligible borrowers were unable to access the student debt relief they qualified for, but that’s all changed thanks to President Biden and this Administration’s relentless efforts to fix the broken student loan system.”
The Biden administration wants to approve $127 billion for student debt relief or complete cancellation which would affect 3.6 million borrowers.
