A statement from the White House says that President Biden has forgiven nearly $5 billion in student loan debt for 74,000 people. This is the administration’s latest attempt to help in small ways after the Supreme Court threw out Mr. Biden’s bigger plan to forgive loans last year.
This will help people who are attending community college, have low incomes, or are having a hard time paying back their bills. The action will also help about 44,000 teachers, nurses, firemen, and other public servants who got their debts forgiven after 10 years of service, as well as about 30,000 people who have been paying back their debts for at least 20 years but have never been forgiven.
The forgiveness of debt is part of the Biden-Harris Administration’s ongoing work to help more people move on with their lives and follow their dreams as quickly as possible.
Through different actions, the government has already forgiven the student loans of 3.6 million Americans and made the SAVE plan, which is the most affordable way to pay back student loans ever.
This plan called SAVE is meant to help people get out of debt faster and give them more money. Borrowers in SAVE who are qualified for early forgiveness will have their debts forgiven months early, without them having to do anything.
The plan builds on the work that the Biden-Harris Administration did to lower the burden of student debt. For example, they fixed the Public Service Loan Forgiveness program, got the biggest raises in Pell Grants in over ten years, and made the most generous Income-Driven Repayment plan ever.
President Biden has promised to fix the way student loans work and make sure that going to college is a way to get into the middle class.
The latest debt cancellation is a step in the right direction, and the government won’t stop until all the people who have been hurt by student loans have been helped. People who owe money and might be able to get their debt forgiven early should join the SAVE plan.