NEWS
Biden Announces $1.2B Student Loan Debt Relief
President Biden’s Latest Effort in Student Loan Debt Relief
President Biden made headlines today by announcing the cancellation of an additional $1.2 billion in student loan debt, benefiting approximately 153,000 borrowers. This move marks his latest endeavor towards student debt relief, following the Supreme Court’s blockage of a broader plan last year.
With this latest action, President Biden has now eliminated $138 billion in student debt for nearly 3.9 million borrowers through approximately two dozen executive actions, as reported by the White House. The decision to cancel this debt comes amidst calls from some Democrats for Biden to emphasize his achievements in debt relief, particularly to rally support among vital demographics such as young voters and Black borrowers who are disproportionately burdened by student loans.
Biden’s Targeted Debt Relief Efforts Student Loan Debt
Since the Supreme Court thwarted Biden’s ambitious $400 billion debt cancellation plan targeting around 43 million borrowers, the White House has turned to smaller-scale programs to provide debt forgiveness for specific groups.
This recent round of Student Loan debt cancellation primarily benefits those enrolled in the income-driven repayment plan known as SAVE, which opened for enrollment in August. SAVE aims to reduce monthly payments and shorten loan terms for millions of borrowers. To ensure proper recognition of Biden’s efforts, affected borrowers will receive an email from the President himself, informing them of the debt relief this week.
Accelerated Student Loan Forgiveness: A Win for Borrowers
The administration highlighted that this expedited forgiveness process will be particularly advantageous for community college and other borrowers with smaller loans, propelling many towards debt freedom quicker than anticipated.
Under the SAVE plan, borrowers who originally took out loans up to $12,000 and made at least ten years of qualifying monthly payments will have their debt entirely forgiven. Additionally, the administration expedited plans to shorten loan terms, originally slated to take effect in July.
The timing of this announcement couldn’t be better for President Biden, coinciding with his efforts to engage voters during a fundraising trip in California.
