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US Elections 2024: In a significant move, the Biden administration has approved the cancellation of $5 billion in federal student loan debt, benefiting nearly 74,000 borrowers. This latest announcement marks a crucial development in the administration's ongoing efforts to address the challenges within the student loan system.
President Joe Biden, highlighting the administration's commitment to student borrowers, stated, "My Administration is able to deliver relief to these borrowers – and millions more – because of fixes we made to broken student loan programs that were preventing borrowers from getting relief they were entitled to under the law."
Officials from the U.S. Department of Education confirmed the approval of $4.9 billion in federal student loan debt cancellation, benefiting nearly 74,000 borrowers. This move aligns with the administration's broader strategy to alleviate the financial burdens faced by students.
This recent announcement contributes to a series of debt cancellation efforts undertaken by the Biden administration over the last four years. The total student loan debt relief under President Biden's leadership now stands at an impressive $136.6 billion, benefiting more than 3.7 million borrowers.
The bulk of the $5 billion cancellation comes from crucial fixes made to the Public Service Loan Forgiveness program, designed for individuals pursuing careers in government or nonprofit public service. Additionally, $1.7 billion in debt relief stems from adjustments to the federal income-driven repayment plan.
Education Secretary Miguel Cardona emphasized the impact of these fixes, stating, "The nearly $5 billion in additional debt relief announced today will go to teachers, social workers, and other public servants whose service to our communities have earned them Public Service Loan Forgiveness."
President Biden's administration is fast-tracking additional loan cancellation through the Saving on a Valuable Education (SAVE) Plan. This initiative, initially set for July, allows borrowers who meet specific criteria to have their debts erased starting in February.
President Biden affirmed the administration's unwavering commitment to student loan relief despite challenges, stating, "I vowed to improve the student loan system so that higher education provides Americans with opportunity and prosperity – not unmanageable burdens of student loan debt."
In response to the Supreme Court's block of the broader student loan cancellation plan, President Biden expressed the administration's determination to explore alternative paths for debt relief. The focus remains on delivering relief to as many borrowers as possible, addressing the diverse challenges within the student loan system.
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