$7.7 Billion Federal Student Loan Cancellation: 160,000 Borrowers Benefit – Biden Administration Pushes for One-Time Cancellation Plan Amid Opposition

The Biden administration has announced a $7.7 billion federal student loan cancellation benefiting 160,000 borrowers as part of its ongoing efforts to reduce student debt.

Biden Administration Announces $7.7 Billion Federal Student Loan Cancellation, Benefitting 160,000 Borrowers

The Biden administration has just announced the cancellation of $7.7 billion in federal student loans bringing relief to an additional 160,000 borrowers. This action is part of their ongoing effort to reduce student debt having already canceled $167 billion for nearly 5 million Americans. President Biden reaffirmed his commitment to ensuring that higher education remains accessible emphasizing that student debt shouldn’t stand in the way of reaching the middle class, according to the report of CBS.

This relief benefits borrowers in three categories those enrolled in Biden’s new income-driven repayment plan (the SAVE Plan), earlier income-driven plans, and the Public Service Loan Forgiveness program. The SAVE Plan offers a quicker path to forgiveness, with eligibility after ten years of payments, a decade sooner than before. Despite legal challenges from Republican-led states and the administration is moving forward with its mission to ease the financial burden of student debt.

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(photo: Philadelphia Inquirer)

Biden Administration’s Student Loan Relief Efforts Extend to Address Past Errors, Push for One-Time Cancellation Plan Amid Opposition

The administration is also addressing past errors that delayed loan cancellation for some borrowers. This corrective action aims to streamline the process for individuals in various repayment plans and pursuing Public Service Loan Forgiveness. Each month, more borrowers are approved for relief with one in ten federal student loan borrowers now receiving some form of assistance.

Additionally, the administration is pushing for a one-time cancellation plan to help over 30 million borrowers in five categories. Conservative opponents argue against this plan claiming it benefits wealthy college graduates at taxpayers’ expense. Despite potential legal challenges, the administration remains committed to implementing measures to alleviate the student debt crisis and plans to expedite relief for millions of borrowers.

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While the Supreme Court rejected an earlier attempt at one-time cancellation and the administration is pursuing a revised legal justification to enact meaningful reforms and provide relief to those burdened by student loan debt.