On Friday, U.S. President Joe Biden announced a plan to cancel almost five billion dollars in student loans for an extra 74,000 debtors. After 10 years of public service, like as a teacher, nurse, or policeman, more than half of these debtors had their loans cleared. With this news from the White House, the Biden-Harris government has officially erased more than 3.7 million Americans’ student loans, for a total of $136.6 billion.
About 44,000 of the borrowers who were given relief have worked for the government for ten years, and about 30,000 have been paying back their loans for at least twenty years but have never been given relief through income-driven payback plans.
President reaffirmed his dedication to reducing student debt and promised to keep working to help as many borrowers as possible, especially since the Supreme Court’s decision to block a plan to cancel hundreds of billions of dollars in debt.
Miguel Cardona, the secretary of education, said that the department was set on going “full speed ahead” to help even more people get out of debt. A new SAVE payback plan is being worked on to help them get on a faster path to loan forgiveness.
Mounting Student Debt
According to the US Department of Education’s website, as of June 2023, about 43.4 million people who borrowed money for college still owed $1.63 trillion in loans. This is an increase of nearly $17 billion in the amount of money still due and an increase of almost 600,000 in the number of people who have obtained financing.
Democratic supporters, who made up a big part of the group that helped Biden win the 2020 election, have made student loan debt a top problem. For younger voters, the administration’s ongoing actions to deal with student loan debt are very important.
Many of them are keeping a close eye on this problem and are still pushing for more debt forgiveness. Even though there are worries about foreign policy and other issues, the government is still focused on helping borrowers and changing the way student loans are paid back.
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