Tuesday, April 16, 2024

Biden to forgive $7.4 billion more in student loan debt for 277,000 borrowers

 The Biden administration has already authorized the cancellation of $153 billion in student loan debt for nearly 4.3 million people across America. That's more than 9% of all outstanding federal student loan debt.  

The administration has been very on top of this topic as they’ve been making new announcements about debt relief monthly and they have another group of student debt relief proposals that could go into effect this fall. The Biden administration has made it easier to qualify for loan forgiveness for specific groups such as public sector workers. They have also launched a new plan to shorten the pathway to loan forgiveness for many low income borrowers, although the Republicans are pushing hard against this. They argue this cost is going to taxpayers who chose not to go to college or are already paying for it themselves.

$3.6 billion of this student debt relief will be delivered to people enrolled in the SAVE (Saving on a Valuable Education) program. Since it launched last year, almost 8 million borrowers enrolled and 360,000 people have seen their debt canceled. 

There were previously repayment plans within the government in other presidencies but SAVE requires way less time to receive the debt relief. In addition, unpaid interest does not accrue as long as monthly payments are made in SAVE. 

The Biden administration has canceled more student debt than any other President in history and it doesn’t look as if they’re done yet.


Cooper Meek

https://apple.news/A13tpyRA8T1OOCiXfG8SMnw

1 comment:

Tim Root said...

Although it is great they are forgiving this debt, what effect will just letting go of this money have on the economy?