Joe Biden Student Loan Debt Plan: 80,300 Borrowers To Benefit from $4.8 Billion Forgiveness

The Joe Biden administration revealed on Wednesday its decision to forgive an additional $4.8 billion in student loan debt, providing relief to 80,300 borrowers, according to CNBC.

This latest measure stems from the US Department of Education's enhancements to income-driven repayment plans and the Public Service Loan Forgiveness (PSLF) program.

US Secretary of Education Miguel Cardona emphasized the unprecedented nature of this debt relief, stating, "Before President Biden took office, it was virtually impossible for eligible borrowers to access the student debt relief they rightfully earned."

He further assured that the administration remains committed to addressing the challenges within the student loan system.

The relief package allocates over $2 billion to nearly 46,000 borrowers enrolled in income-driven repayment plans.

These plans, designed for debt forgiveness after a specified period, often fell short due to errors in loan servicers' tracking of payments.

An additional $2.6 billion will benefit 34,400 borrowers who have dedicated a decade or more to public service, a sector grappling with its own issues in the PSLF program.

With this latest move, the Biden administration has now canceled nearly $132 billion in US student loan debt, providing relief to more than 3.6 million Americans.

Joe Biden US Student Loan Debt Forgiveness

Despite the administration's efforts, Republican Speaker Mike Johnson criticized the latest US student loan debt relief, asserting that it does not genuinely cancel or forgive any debt, per the Daily Mail.

Johnson argued that President Biden is shifting the financial burden onto hardworking taxpayers, characterizing the move as unfair.

November saw the announcement to nearly 80,300 beneficiaries that their remaining US student loan debt would be wiped out.

President Joe Biden, in his commitment to address the student loan crisis, has now canceled more student debt than any of his predecessors.

Education Secretary Cardona emphasized the latest discharges as a testament to the administration's unwavering dedication to rectifying the flaws in the country's student loan system.

The ongoing effort to cancel student loan debt is viewed as part of Biden's strategy to connect with young voters and has intensified in the lead-up to the election.

Recent initiatives include the cancellation of $9 billion in student debt for 125,000 borrowers in October.

Biden Administration's Efforts Amid US Student Loan Debt Resumption

As US student debt loan payments resumed in October after a pandemic-induced hiatus, the Joe Biden administration not only forgave student debt but also sought to alleviate the burden on borrowers, WBALTV 11 noted.

The SAVE (Saving on a Valuable Education) repayment plan, launched this summer, offers favorable terms, particularly for lower-income borrowers.

To further assist borrowers, the Department of Education introduced a 12-month on-ramp period until September 2024, shielding struggling individuals from adverse consequences such as negative credit reporting.

However, concerns have been raised by some Democratic lawmakers regarding potential implementation errors during this period.

In a bid to address student loan forgiveness, the administration is embarking on a one-time forgiveness program, utilizing a different legal framework than the one previously struck down by the Supreme Court.

The formal rulemaking process, known as "negotiated rulemaking," is underway and is expected to progress into next year, potentially facing legal challenges.

This article is owned by Latin Post.

Written by: Bert Hoover

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