On Monday, President Joe Biden said that his administration would cancel student loans for more than 150,000 borrowers. This is the latest in a series of actions he has taken to deal with the problem of student debt. This time, it will target students who attended schools that committed fraud, permanent disability borrowers, and public service borrowers. In this move, the Biden administration has given relief to over 5 million Americans.
The 150,000 beneficiaries of loan cancellations include approximately 85,000 who had attended institutions “that cheated and defrauded their students”; 61,000 people also fall into a permanently disabled group; and finally, 6,100 public servants. As put by Biden, the total outstanding value of debt relief provided so far through these 28 debt relief actions is staggering: $183.6 billion.
Joe Biden cancels student loans, what does it mean for pupils?
Monday’s move alone would cost over $4.2 billion in student loans forgiveness. Relieving student loan debt has continued to be an anchor of the Biden administration even as it battles legal challenges in the courts from Republican lawmakers. Student debt cancellation was one of the key campaign promises Biden made during his 2020 run.
In his statement, Biden reaffirmed his commitment to easing the financial burden for Americans struggling with student loans, particularly those who were misled by predatory institutions or those whose health conditions prevent them from working. As legal obstacles persist, the administration is steadfast in moving forward with debt relief measures to help those most in need.