Biden cancels another $5 billion in student loan debt

Biden cancels another $5 billion in student loan debt

President Biden on Friday canceled nearly $5 billion of student debt for 74,000 people, the latest effort by the administration to provide piecemeal relief after the Supreme Court last year struck down Mr. Biden’s more ambitious debt cancellation plan.

Most of the people benefiting from the latest round are teachers, nurses, firefighters and others in the public service, who qualify for relief under existing programs that have been plagued with bureaucracy and other problems for years.

Mr. Biden said in a statement, “My administration is able to provide relief to these borrowers — and millions more — because we reformed broken student loan programs that were preventing borrowers from getting the relief they deserve under law. Were entitled under.”

His promise to forgive student loans is a sticking point for important voting groups, particularly young people and Black borrowers, who carry the highest burden of student loan debt. More than 43 million people nationwide owe $1.6 trillion in federal loans for college, according to government data.

The Biden administration has canceled more than $136 billion of student loan debt for more than 3.7 million people as the White House looks for a solution following the Supreme Court’s decision in June.

That more ambitious plan would have canceled up to $400 billion of student debt for about 43 million borrowers. But the court ruled that Mr Biden had overstepped his authority with the plan.

The president said Friday that the administration is “continuing to pursue an alternative path to delivering student loan relief to as many borrowers as quickly as possible.”

In October, the administration forgave $9 billion in loans for about 125,000 borrowers who work in public service jobs and have permanent disabilities. last month, The administration announced nearly $5 billion Relief to 80,300 borrowers.

The administration also launched a program, known as SAVE, that would lower monthly payments and shorten the life of loans for millions of borrowers.

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