Biden Advances $39 Billion Student Loan Debt Cancellation Plan

On Monday, President Joe Biden confirmed the execution of his administration’s plan to forgive $39 billion in student loan debt for more than 800,000 borrowers.

The White House released a statement from the president, saying, “On day one of my administration, I promised to fight for hardworking families and to fix problems in the student loan system that have been failing borrowers for too long.”

He continued, “I’m proud that my administration is delivering on that promise and has already approved over $116 billion in debt cancellation for 3.4 million Americans – no matter how many lawsuits, challenges or roadblocks Republican elected officials or special interests put in our way.”

Biden stated that the loan forgiveness initiative, disclosed by Education Secretary Miguel Cardona in July, aims to rectify “errors and administrative failures of the student loan system that started long before I took office.”

Biden said, “When I came into office, hundreds of thousands of borrowers weren’t accurately getting credit for student loan payments that should have delivered them forgiveness under Income-Driven Repayment plans or were placed into forbearance by loan servicers in violation of Department of Education rules. Under these plans, if a borrower makes 20 or 25 years’ worth of payments, they get the remaining balances of their loans forgiven.”

ABC News announced on Monday that a portion of the 800,000 qualified borrowers will soon get an email labeled with the subject line, “Your student loans have been pardoned.”

The report indicated that this email distribution would conclude within the upcoming weeks.

Around 614,000 individuals are anticipated to have their student loan debts erased.

On Monday, Biden highlighted that his recent move to cancel student loan debt exemplifies one of the “alternative” approaches his administration has adopted to offer relief to numerous borrowers.

Biden stated, “As I announced earlier this summer in the wake of the Supreme Court’s decision on our student debt relief plan, we will continue to pursue an alternative path to deliver student debt relief to as many borrowers as possible as quickly as possible. We will use every tool at our disposal to get student loan borrowers the relief they need to reach their dreams.”

Since assuming office in January 2021, the Department of Education has pardoned more than $116 billion in federal student loan debt owned by over 3.4 million students.

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