President Biden made a significant move on Friday by canceling $7.4 billion in student loan debt, aiming to appeal to young voters who have been struggling with the burden of education costs. This latest round of relief is part of a targeted strategy by the White House to address the issue of student debt after a more ambitious plan was struck down by the Supreme Court last year.
The announcement on Friday will benefit around 277,000 borrowers, with more than 200,000 of them having originally borrowed relatively small amounts. Additionally, teachers, librarians, academics, and public safety workers who have been making payments for 10 years under the Public Service Loan Forgiveness program will also see relief. Overall, the Biden administration has forgiven $153 billion in debt for 4.3 million borrowers so far.
Education Secretary Miguel A. Cardona emphasized the administration’s efforts to fix a broken system and provide better repayment plans for borrowers. However, Republicans in Congress have raised concerns about the fairness of student debt relief, arguing that it penalizes those who have already paid off their loans.
Despite the challenges and opposition, President Biden outlined a new plan to reduce the amount owed by 25 million borrowers and wipe away the entire debt for over four million Americans. This plan, which is based on the Higher Education Act, will undergo a public comment period and face legal challenges.
The Biden administration remains committed to addressing the issue of student debt and providing relief to millions of borrowers, with a focus on creating a more sustainable and equitable system for the future.
