TheUsDaily

USA President Joe Biden || Picture Credits: Twitter
Economy Politics

Prez Biden announces student debt relief worth US$ 9 billion

Washington DC, United States: US President Joe Biden has announced that his Administration has planned to bring student debt relief worth US$ 9 billion, according to the official statement shared by the White House.

It is to be noted that since day one, the Biden Administration has taken unprecedented steps to fix the broken student loan system, make college more affordable, and bring the promise of higher education in reach for more Americans.

The step has been taken as a part of the efforts of President Biden and his Administration to make these promises a reality for the students of America.

“President Biden is announcing that an additional 125,000 Americans have been approved for $9 billion in debt relief through fixes his Administration has made to income-driven repayment (IDR) and Public Service Loan Forgiveness, and by canceling debt for borrowers with total and permanent disabilities,” noted the White House.  

Highlighting success of Administration, President Biden through official X handle wrote, “I promised you that my Administration would continue to use every tool at our disposal to ease the burden of student debt so more Americans can be free to achieve their dreams.

Highlighting the approved announcement by the Biden-Harris Administration, the White House noted:

  • $5.2 billion in additional debt relief for 53,000 borrowers under Public Service Loan Forgiveness programs.
  • Nearly $2.8 billion in new debt relief for nearly 51,000 borrowers through fixes to income-driven repayment. These are borrowers who made 20 years or more of payments but never got the relief they were entitled to.
  • $1.2 billion for nearly 22,000 borrowers who have a total or permanent disability who have been identified and approved for discharge through a data match with the Social Security Administration.

Along with this, the Education Department of the United States is also sharing and revealing the state-by-state data. The data will consist of the stats of debt relief, which was approved under the Administration of Biden and Harris. It will cover relief provided through fixes to IDR and Public Service Loan Forgiveness.

The statement released by the White House emphasized the efforts put in by the Biden-Harris Administration to make college education more affordable to students. It also outlined that the current Administration has also worked to ensure that student loans do not become a barrier between students and opportunities.

It is to be highlighted that this is not the first time; earlier, it launched the most affordable student loan repayment plan – SAVE – which makes many borrowers’ monthly payments as low as $0 and prevents balances from growing because of unpaid interest.

Along with this, President Biden has also assured that his Administration has been looking for an alternative path to debt relief through negotiated rulemaking under the Higher Education Act. This remark was shared by Biden after the Supreme Court announced its decision on the original student debt relief plan.

“The Administration took an important step forward in the negotiated rulemaking process last week as the Department of Education announced individuals who will serve on the negotiating committee and released an issue paper to guide the first negotiating session. The paper asks the committee to consider how the Administration can help borrowers, including borrowers whose balances are greater than what they originally borrowed, those who would be eligible for relief under existing repayment plans but have not applied, and borrowers who have experienced financial hardship on their loans that the current loan system doesn’t address,” the White House mentioned through the official statement.

Student Debt Relief introduced by the Biden-Harris Administration:

This announcement will bring the total amount of approved debt relief to US$ 127 billion. It is to be noted that this relief has benefitted approximately 3.4 million American students.

As per the official stats, out of the total US$ 127 billion, nearly US$42 billion were offered to almost 855,000 borrowers who are eligible for forgiveness through income-driven repayment by fixing historical inaccuracies in the count of payments that qualify toward forgiveness;

Along with this, almost US$51 billion was for 715,000 public servants through Public Service Loan Forgiveness programs; US$11.7 billion was for almost 513,000 borrowers with a total and permanent disability; and US$22.5 billion was for more than 1.3 million borrowers who were cheated by their schools, saw their institutions precipitously close, or are covered by related court settlements.

What’s your Reaction?
+1
0
+1
0
+1
0
+1
0
+1
0
+1
0

Leave a Reply

Your email address will not be published. Required fields are marked *