Bident Cancels $1.2 Billion Of Student Loans

Bident Cancels $1.2 Billion Of Student Loans

The Biden administration recently cancelled another $1.2 billion in student debt for over 150,000 borrowers under its income-based repayment plan. This brings the total amount of debt relief that Biden has approved for almost 4 million Americans to $138 billion.

Eligible borrowers will have their debts cancelled soon, with notices already sent by email. Despite initial delays, the Education Department accelerated the forgiveness process through the Savings on a Valuable Education (SAVE) plan. To qualify, borrowers must be enrolled in SAVE and repay for at least 10 years on a federal student loan of $12,000 or less.

Biden’s student debt relief efforts are part of his reelection strategy, despite opposition from Republicans and legal challenges. He attributes setbacks to “MAGA Republicans in Congress” and “special interests.” Republicans, like Sen. Bill Cassidy, criticise the move as unfair vote-buying.

Biden argues that debt cancellation benefits everyone by enabling borrowers to invest in homes, businesses, and communities. He emphasises its economic growth potential. At a California event, Biden was praised by Dr. Jessica Saint-Paul, whose $144,652 student loans were forgiven after 18 years of payments, illustrating the program’s life-changing impact.