Biden’s Student Debt Relief Plan
The U.S. Department of Education explained that this student debt relief or debt cancellation became possible due to prior actions taken by the federal government to rectify the persistent shortcomings in the student loan programs, the Street reported.
Under the new repayment plans, most borrowers will be entitled to have their debts forgiven after making payments for 20 years, depending on the specifics of their borrowing and the types of plans they have.
The administration’s objective is to correct the previous years during which entitled borrowers did not receive the student debt relief or debt forgiveness they deserved, as the payments they made towards becoming debt-free were not properly accounted for.
This announcement comes shortly after President Biden’s defeat in the Supreme Court on June 30.
In a 6-3 decision, the court blocked the administration’s plan to cancel over $400 billion in student loan debt for millions of borrowers.
The Supreme Court’s ruling was a significant setback for President Biden, who had promised during his campaign to cancel up to $10,000 in student loan debt for borrowers. This decision means that millions of borrowers will continue to carry the burden of student loan debt, which has reached an all-time high of $1.7 trillion.
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Biden Reassures the Public Regarding Student Debt Relief Plan
Following the court’s decision, President Biden expressed his disagreement, stating, “The Court’s decision to strike down our student debt relief plan is wrong.”
He reassured the public that his administration will continue to seek alternative means of providing student debt relief to hard-working middle-class families and reaffirmed his commitment to making higher education accessible to all Americans.
Last year, after federal courts in Missouri and Texas temporarily halted the program, the Biden administration turned to the Supreme Court, seeking the justices’ intervention on the matter.
The recent legal developments have spurred the administration to pursue new avenues to address the student debt crisis and fulfill the promises made during Biden’s campaign for the White House.
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