In another move to alleviate the burden of student debt, President Biden has recently announced a comprehensive plan that will provide relief to millions of borrowers. As payments resume after the pause due to the coronavirus pandemic, this latest step by the Democratic president aims to erase a staggering $9 billion in debt through existing relief programs.
The impact of this announcement is far-reaching, with approximately 125,000 borrowers set to benefit from this initiative. Since taking office, President Biden has been steadfast in his commitment to addressing the student debt crisis. In total, an impressive $127 billion in debt will have been wiped out for 3.6 million borrowers under his administration.
So who exactly will this benefit? More than $5 billion of the aid will go to 53,000 borrowers who’ve worked in public service for a decade or more. Meanwhile, $2.8 billion of the forgiveness is for 51,000 borrowers that are enrolled in income-driven repayment plans. As for the other folks, another $1.2 billion of the cancellation will go to 22,000 borrowers with disabilities.
“My administration has taken significant action to provide student debt relief to as many borrowers as possible as quickly as possible,” Biden said during remarks at the White House this Wednesday. “That starts with making sure the existing system works in the way it was supposed to work for student borrowers.”
He continued, “The money was literally about to go out the door, but Republican elected officials and special interests stepped up and sued us,” Biden said Wednesday of his original relief plan. “And the Supreme Court sided with them, snatching from the hands of millions of Americans thousands of dollars in student debt relief that was about to change their lives.”
He also tweeted this morning, “Earlier this year, we were on the verge of getting millions of Americans student debt relief. Republican elected officials and special interests blocked it.
Now, we’re pursuing another path grounded in the Higher Education Act. And we’re not backing down.”
Biden’s move comes months an after the Supreme Court blocked his plan to cancel hundreds of billions of dollars in debt. He said back in July, the he will pursue new measures to provide student loan relief to Americans and it looks like He’s sticking to that plan.