President Biden made a significant announcement on Friday, revealing his intention to cancel the student debt of over 277,000 borrowers.
The latest debt relief program by the administration forgives a total of $7.4 billion in student loans for borrowers in over 40 states. This brings the total amount of student loan cancellation during President Biden’s tenure to an impressive $153 billion.
The latest loan forgiveness initiative is being introduced through a range of income-driven repayment (IDR) plans, including the newly established SAVE program by the president.
President Biden expressed his unwavering commitment to making higher education accessible and affordable for all. He emphasized his determination to alleviate the burden of student debt, regardless of any opposition from Republican officials. Biden stated, “From the very beginning of my Administration, I vowed to ensure that higher education serves as a pathway to the middle class, not a hindrance to opportunity. I will persistently work towards the cancellation of student debt.”
Biden has primarily focused on providing loan forgiveness to specific groups of individuals. These include public service workers, borrowers who are enrolled in income-driven repayment plans, individuals who have been defrauded by their schools, and those with disabilities.
“The Biden administration is completely out of touch with the reality,” commented Representative Virginia Foxx (R-N.C.), who chairs the House Education Committee. Her statement reflects the frustration and disappointment felt by many in response to President Biden’s recent announcement on Friday.”
According to Foxx, it is frustrating to see the administration prioritize its illegal student loan scheme instead of fulfilling its responsibilities. This has not only jeopardized the academic journey of millions of students, but also consumed valuable time, energy, and resources. What is even more exasperating is that the administration continues to neglect its duties and remains fixated on its student loan shenanigans.
Building on Biden’s earlier announcement, the latest initiative for debt relief aims to forgive loans for various groups. This includes individuals on IDR plans, participants in low-financial-value education programs, those facing financial hardships, and borrowers whose debt has increased due to unpaid interest.
According to the Penn Wharton Budget Model, the estimated cost of the recently announced proposed plan is approximately $84 billion.
The approval of that plan and its subsequent court proceedings will likely take several more months.
“We are aware of the actions that Republicans plan to take, and although we cannot prevent them from doing so, it will not deter the president from taking decisive action, as he is doing today,” stated White House press secretary Karine Jean-Pierre earlier this week.
