WASHINGTON – President Biden said Wednesday that his administration is forgiving $9 billion in student loan debt through an existing program as part of a broader effort to undo the effects of a June Supreme Court decision that struck down his plan to eliminate $430 billion in college debt.
“I’m announcing my administration has approved $9 billion in additional aid for 125,000 borrowers in just the last few weeks,” Biden said at his only public event of the day at the White House.
“With the latest debt cancellation, in total, my administration has canceled $127 billion in student debt for nearly 3.6 million Americans.”
The latest $9 billion in debt relief is the result of three changes to ensure that people already eligible for loan forgiveness under the existing program actually get money wiped off their balance sheets, the White House said.
Biden has routinely touted such measures as he appeals to young voters in next year’s election after receiving criticism for not doing more to fulfill his campaign pledges — and his latest move has left those critics unsatisfied.
President Biden said Wednesday that his administration is forgiving $9 billion in student loan debt through an existing program.AP
Astra Taylor, co-founder of the group Debt Collective, told CNBC on Wednesday that “if the Department of Education can cancel this amount, it can cancel everything — meeting and exceeding the president’s commitment to borrowers who are being crushed by the chaotic return to repayment.”
While the Republican administration has advanced its own plan to write off student debt, some GOP critics say the forgiveness is unfair to borrowers who repay the cost of their education and to taxpayers who choose not to attend college. “Joe Biden’s student loan bailout for the rich has been rejected by the Supreme Court. Now, he’s trying to save face by canceling the debt for a while while the family struggles to afford Bidenomics,” Republican National Committee Chairwoman Ronna Romney McDaniel said Wednesday.
“Biden’s desperate vote grab will not cover high inflation and failed economic policies.”
The majority of the amount from Wednesday’s announcement — $5.2 billion — went to the 53,000 public service workers who are eligible for loan forgiveness under the Public Service Loan Forgiveness program.Allison Bailey/NurPhoto/Shutterstock
Biden announced his far more ambitious plan to forgive up to $10,000 in student debt for all borrowers — or double that amount for low-income Pell Grant recipients — in August 2022 ahead of last year’s midterm elections, despite what fellow Democrats did , including the Dewan Rakyat at that time. Speaker Nancy Pelosi (D-Calif.), acknowledged the possibility of lengthy legislation.
The majority of the amount from Wednesday’s announcement — $5.2 billion — went to the 53,000 public service workers eligible for loan forgiveness under the Public Service Loan Forgiveness program, created in 2007 through legislation signed by President George W. Bush.
The PSLF program allows loans to be forgiven after 10 years of payments, with the effect set to take effect from 2017. Student loan payments were suspended at the start of the COVID-19 pandemic in 2020 and the aid program has been criticized for being poorly implemented.
“At the time I held office [the Public Service Loan Forgiveness program] has existed for almost 15 years. Because of red tape, only 7,000 borrowers have been helped,” Biden said on Wednesday. “Today, thanks to the reforms, more than 700,000 borrowers have had their debts forgiven.”
Biden previously announced various other efforts to address “bureaucracy” in existing student loan repayment programs as well as loan forgiveness for students who are victims of allegedly fraudulent educational institutions. Los Angeles Times via Getty Images
Another $2.8 billion in new debt relief was applied to about 51,000 former college students through existing income-based repayment plans that limit the amount of income used for loan payments, the White House said.
The remaining $1.2 billion went to about 22,000 eligible borrowers with total or permanent disability through a cross-check of Social Security Administration data.
Biden previously announced various other efforts to address “red tape” in the existing student loan repayment program as well as loan forgiveness for students who were victims of allegedly fraudulent educational institutions – including $6 billion in debt cancellation in June for some 200,000 former students the size. for-profit school.
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Source: thtrangdai.edu.vn/en/
