Biden cancels $1.2 billion in student debt six months ahead of schedule
President Biden has expedited the cancellation of $1.2 billion in student loan debt for over 150,000 borrowers, taking action six months earlier than planned.
Borrowers who have been repaying for at least 10 years and owe $12,000 or less are eligible for this relief under the SAVE plan, with additional relief for those with larger debts.
The White House stated that this will especially benefit community college attendees, aiming to clear 85% of their debts within a decade.
Biden has now discharged almost $138 billion in student loans for nearly 3.9 million people without legislative backing, despite an earlier Supreme Court block on a more extensive debt cancellation proposal.
The White House emphasized Biden's effort to transform higher education into an opportunity, not an obstacle. Those qualifying for the latest debt relief will be notified, and the Department of Education will reach out to eligible individuals not yet enrolled in the SAVE plan.
This move builds upon Biden's previous actions to fulfill his campaign promises to students, including canceling billions through the Public Service Loan Forgiveness program, income-driven repayment improvements, disability discharges, and other discharges. Education Secretary Miguel Cardona reaffirmed the administration's commitment to student debt forgiveness.
The Penn Wharton budget model estimates the SAVE plan's cost at $475 billion over 10 years. Republicans have criticized Biden's debt forgiveness, concerned about increasing the national debt, which they believe taxpayers will ultimately bear.
The White House stated that this will especially benefit community college attendees, aiming to clear 85% of their debts within a decade.
Biden has now discharged almost $138 billion in student loans for nearly 3.9 million people without legislative backing, despite an earlier Supreme Court block on a more extensive debt cancellation proposal.
The White House emphasized Biden's effort to transform higher education into an opportunity, not an obstacle. Those qualifying for the latest debt relief will be notified, and the Department of Education will reach out to eligible individuals not yet enrolled in the SAVE plan.
This move builds upon Biden's previous actions to fulfill his campaign promises to students, including canceling billions through the Public Service Loan Forgiveness program, income-driven repayment improvements, disability discharges, and other discharges. Education Secretary Miguel Cardona reaffirmed the administration's commitment to student debt forgiveness.
The Penn Wharton budget model estimates the SAVE plan's cost at $475 billion over 10 years. Republicans have criticized Biden's debt forgiveness, concerned about increasing the national debt, which they believe taxpayers will ultimately bear.
