Biden Announces Additional Student Debt Cancellation of $5 Billion for 74,000 Borrowers

Biden Announces Additional Student Debt Cancellation of $5 Billion for 74,000 Borrowers

VoM News Desk | January 21, 2024 | 09:56 AM IST | United States of America, World | Follow on Google News

Biden Announces Additional Student Debt Cancellation of $5 Billion for 74,000 Borrowers/Reuters

Biden Announces Additional Student Debt Cancellation of $5 Billion for 74,000 Borrowers

President Joe Biden revealed on Friday a new round of student debt cancellation, totaling nearly $5 billion for an additional 74,000 borrowers. More than half of these borrowers earned forgiveness after a decade of public service as teachers, nurses, and firefighters, contributing to a total loan forgiveness of $136.6 billion for over 3.7 million Americans during the Biden-Harris administration.

Focus on Public Service and Long-Term Repayment

Among the approved relief, approximately 44,000 borrowers have a decade of public service, while close to 30,000 individuals have been repaying loans for over 20 years without receiving relief through income-driven repayment plans.

Biden’s Commitment to Student Debt Relief

Despite the Supreme Court’s June 30 ruling blocking a broader debt cancellation plan, President Biden remains committed to delivering relief to student loan borrowers. He pledged to continue utilizing every available tool to provide the necessary relief for individuals striving to fulfill their dreams through education.

Education Secretary’s Assurance and Future Plans

Education Secretary Miguel Cardona affirmed the department’s dedication to delivering even greater debt relief for more borrowers. Efforts are underway to facilitate faster loan forgiveness through a new SAVE repayment plan, reflecting the administration’s commitment to addressing the challenges faced by student loan recipients.

Student Debt Landscape

As of June 2023, approximately 43.4 million student loan recipients held outstanding loans totaling $1.63 trillion, representing an increase in both outstanding loan balance and the number of recipients since the previous year. The move to address student loan debt aligns with progressive voters’ concerns, who have consistently advocated for comprehensive debt relief and continue to prioritize this issue on the political agenda.

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