The US government, led by President Joe Biden, announced significant relief for student loan borrowers on Friday. $39 billion in debts will be automatically forgiven for 804,000 beneficiaries. This relief is the result of corrections made to the income-based repayment plans of the student loan system.
First modification:
3 min
In an unprecedented move, the Biden Administration has announced the automatic forgiveness of $39 billion in student debt. This action corrected the deficiencies of a broken system that has left many students struggling under the overwhelming weight of debt.
Under these repayment plans, the US government cancels any remaining debt after borrowers have made payments for 20 or 25 years, depending on when they took out the loan and the type of plan and loans. The announcement comes as a solution to historical deficiencies in the system that did not adequately account for payments that brought borrowers closer to debt forgiveness.
This action builds on the Administration’s record forgiving $78 billion in student debt relief. As of today, this includes:
– 653,800 public servants through Public Service Loan Forgiveness
– 491,000 borrowers who have a permanent disability
– 1.3 million borrowers taken…— The White House (@WhiteHouse) July 14, 2023
“Republican lawmakers have done everything they can to prevent me from providing aid to American workers,” Joe Biden said in a statement.
US Education Secretary Miguel Cardona stressed that borrowers have long been plagued by a flawed system that has not accurately tracked their progress toward forgiveness. As a result, debt relief will be extended to those who have paused their payments in deferrals and deferrals, as well as those who have made partial or late payments.
We are keeping our promise to fix the broken student loan system.
Today, the Biden-Harris administration is taking another historic step to right these wrongs and announcing $39 billion in debt relief for another 804,000 borrowers. https://t.co/bOlOndhAms
— Secretary Miguel Cardona (@SecCardona) July 14, 2023
While this measure is a victory for borrowers, it is considered relief to which they are entitled. Persis Yu, deputy executive director of the Student Borrower Protection Center, stressed that more than 804,000 people are receiving relief due to student loan failures, noting that this is just the tip of the iceberg. She noted that the broken system has harmed working people, turning them into collateral damage.
Biden contradicts the Supreme Court
Notably, this announcement comes after the Supreme Court rejected President Biden’s student loan forgiveness plan, which sought to cancel hundreds of billions of dollars in debt and would have benefited some 37 million people.
The Department of Education will notify eligible borrowers in the coming days, and the Biden Administration will continue to pursue new measures to provide student loan relief to Americans. A regulatory process has begun to carry out a $430 billion loan relief plan, which is expected to take months to implement.
The Biden Administration’s commitment to education and reducing the burden of student debt is evident, and Vice President Kamala Harris He stressed that they will continue to fight to ensure that Americans can access quality higher education without the burden of unmanageable debt.
President Joe Biden and I are committed to delivering relief to student loan debt borrowers to help them move forward with their lives. Today, we are taking another historic step forward.
Read my full statement: pic.twitter.com/5y6jXe1rsw
— Vice President Kamala Harris (@VP) July 14, 2023
Since taking office, the Biden administration has provided significant student loan relief, with more than $116 billion in loan relief for more than three million borrowers over the past two years.
The now-announced student debt forgiveness is an important step toward reforming America’s student loan system, and is expected to provide some respite for those affected by the burden of educational debt.
The definition reflects the commitment of the United States Government to provide accessible education and to ease the financial burden of that of the United States Government to provide accessible education and to ease the financial burden of those who seek to improve their lives through higher education. .
With information from Reuters, EFE and local media
