The Biden administration announced nearly $5 billion in student loan forgiveness for more than 80,000 people Wednesday, according to a press...
The Biden administration announced nearly $5 billion in student loan forgiveness for more than 80,000 people Wednesday, according to a press release.
The Supreme Court ruled 6-3 in June that the Biden administration’s student loan forgiveness program for non-Pell Grant and Pell Grant recipients was unconstitutional, and on June 30 the Department of Education (ED) announced another plan to expand income-driven repayment plans, potentially costing American taxpayers billions. The White House announced that borrowers who have been in repayment for at least 20 years but didn’t get credit for payments will have their debt relieved through Public Service Loan Forgiveness, according to a White House press release.
“Today my Administration is approving another $4.8 billion in student debt cancellation for 80,300 people. This relief is thanks to my Administration’s efforts to fix Public Service Loan Forgiveness, so teachers, members of the military, nurses, and other public service workers get the relief they have earned,” the press release reads.
WOODSIDE, CALIFORNIA – NOVEMBER 15: U.S. President Joe Biden delivers remarks at a news conference at the Filoli Estate on November 15, 2023 in Woodside, California. (Photo by Kent Nishimura/Getty Images)
The Biden administration has forgiven billions in student debt cancellation for more than 3.6 million borrowers, according to the White House press release. It has forgiven nearly $51 billion for 715,000 through the Public Service Loan Forgiveness, nearly $42 billion for 855,000 borrowers through income-driven repayment, and $11.7 billion for nearly 513,000 borrowers with disabilities.
The Supreme Court ruled in June that the secretary of Education did not have the power to cancel $10,000 in student loan debt for non-Pell Grant recipients and up to $20,000 for Pell Grant recipients. ED later announced that the department would use the Higher Education Act to forgive student loans. The new plan would cut payments for persons making $32,800 or less annually to $0.
No comments