President Biden announced today that his Administration is canceling $7.7 billion in student loans for 160,000 borrowers. This latest action brings the total number of Americans who have benefited from debt relief measures under Biden to 4.75 million, each receiving an average of over $35,000 in debt cancellation.
The newly canceled debts include those of individuals enrolled in the Administration’s SAVE student loan repayment plan, public service workers such as teachers, nurses, and law enforcement officials, and borrowers who qualified for relief through recent fixes to the Income-Driven Repayment (IDR) plans.
Ongoing Loan Forgiveness
Today’s announcement builds on three years of significant progress in providing relief and reforming the higher education system. Among the Administration’s key achievements are the largest increases to the maximum Pell Grant in over a decade, ensuring that more low-income students can afford higher education. Additionally, substantial improvements to the Public Service Loan Forgiveness (PSLF) program have ensured that public service workers receive the debt relief they are legally entitled to.
President Biden highlighted these accomplishments, stating, “From day one of my Administration, I promised to fight to ensure higher education is a ticket to the middle class, not a barrier to opportunity. I will never stop working to cancel student debt – no matter how many times Republican elected officials try to stop us.”
Impact On Borrowers
For the 160,000 borrowers benefiting from today’s announcement, the relief is both significant and timely. These individuals represent a diverse cross-section of the American public, including those who have dedicated their careers to public service and those who have been struggling under the weight of student debt.
The average cancellation amount of over $35,000 per borrower provides substantial financial relief, potentially transforming the economic futures of these individuals and their families. By reducing or eliminating monthly loan payments, the Administration’s actions are helping borrowers achieve greater financial stability and opening up opportunities for home ownership, retirement savings, and other essential aspects of economic well-being.
However, it’s important to note that those receiving loan forgiveness were already enrolled in programs like PSLF or income-driven repayment and should have been receiving this already. This forgiveness is not due to a new initiative or “blanket” program created by the administration. Rather, it’s the administration executing on existing programs and ensuring that Americans get the forgiveness they deserve.
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