President Biden made an announcement on Friday that he will be forgiving the student debt of over 277,000 borrowers.
The latest debt relief program by the administration is providing forgiveness of $7.4 billion for borrowers in over 40 states. This brings the total amount of student loan cancellation during Biden’s presidency to an impressive $153 billion.
The newest loan forgiveness initiative is being implemented through a range of income-driven repayment (IDR) plans, including the recently introduced SAVE program by the president.
“When I started my Administration, I made a commitment to make higher education accessible to all, and ensure that it serves as a pathway to the middle class rather than a roadblock. I am determined to keep fighting to eliminate student debt, regardless of the number of attempts by Republican elected officials to impede our progress,” stated Biden.
Biden has primarily focused on providing loan forgiveness to specific groups of individuals. His actions have been geared towards public service workers, individuals on IDR plans, borrowers who have been defrauded by their schools, and people with disabilities.
“The Biden administration’s lack of awareness is striking. It’s hard to find any other way to describe it,” remarked Rep. Virginia Foxx (R-N.C.), who serves as the chair of the House Education Committee, in her reaction to Biden’s announcement on Friday.
According to Foxx, the administration’s misguided attention on its illegal student loan scheme instead of its responsibilities has been frustrating. The flaws in this year’s FAFSA rollout have jeopardized the educational paths of countless students. However, what is truly infuriating is that the administration continues to neglect its duties and prioritizes its student loan shenanigans.
Building on Biden’s previous announcement to forgive loans for various categories of borrowers, this new debt relief initiative aims to provide further assistance. It includes individuals on IDR plans, participants in low-financial-value education programs, those facing financial hardships, and borrowers who have accrued additional debt due to unpaid interest.
According to the Penn Wharton Budget Model, the plan announced earlier this week is estimated to have a cost of approximately $84 billion.
But it will take several months before the plan can be approved and, most likely, end up in court.
“We are well aware of the actions Republicans are going to take, and we acknowledge that we cannot prevent them from doing so. However, their actions will not hinder the president from taking decisive measures and implementing necessary actions, as he is doing today,” stated Karine Jean-Pierre, the press secretary at the White House.
