The Biden administration has announced the forgiveness of $39 billion in student loan debt, benefiting over 800,000 borrowers. The U.S. Department of Education will be notifying these borrowers that their federal student loans will be automatically discharged in the coming weeks.
Education Secretary Miguel Cardona said in a written statement:
“For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness.”
U.S. Secretary of Education Miguel Cardona stated that this historic step by the Biden-Harris Administration aims to fix past administrative failures and level the playing field in higher education. The debt relief will apply to borrowers who have accumulated the equivalent of 20 or 25 years of qualifying monthly payments, depending on their repayment plan and loan type. The Department of Education will continue to identify and notify eligible borrowers every two months until next year, ensuring that all borrowers not yet eligible for forgiveness have their payment counts updated.
It is important to highlight that this announcement follows a recent Supreme Court decision that rejected the Biden administration’s extensive program to cancel student loan debt. According to the court, federal law does not grant the secretary of education the authority to eliminate over $430 billion in student loan debt. Consequently, this new initiative represents only a small portion of the significant change that the $430 billion would have brought, and its impact is expected to primarily benefit individuals with student loans in a few select states. Despite facing this setback, President Biden has expressed unwavering resolve to explore alternative methods of offering relief to diligent middle-class families.
The Biden administration introduced a student loan forgiveness proposal with the goal of easing the financial burden on borrowers who earn less than $125,000 per year. The initiative aimed to provide debt relief of up to $10,000 (or up to $20,000 for Pell Grant recipients). While the larger program has been temporarily halted, the recent forgiveness of $39 billion in debt is the Biden administration’s attempt at addressing the perceived “student loan crisis” in the United States.
However, it is clear that the issue extends beyond students acquiring loans and being burdened with debt. This is evident when we consider the fact that many 16-year-olds opt for loans to finance their car purchases, yet we don’t face a similar crisis in this area. Car debt is typically managed differently from the overwhelming debt that students can accumulate to pursue higher education, even in cases where the education is obtained from a State-funded institution.
The root cause of the so-called “student loan crisis” appears to be the escalating cost of college education. Over the span of two decades from 2000 to 2021, average tuition and fees have surged by a staggering 69%, soaring from $8,082 to $13,677 per year. This upward trend in educational expenses is likely at the core of the problem. Due to the escalating expenses associated with pursuing a higher education, which has become increasingly crucial for securing employment in today’s workforce, the financial burden of acquiring this vital education has become prohibitively expensive. Consequently, numerous students find themselves willingly entangled in overwhelming student loan debts, often reaching hundreds of thousands of dollars.
If the Biden administration and lawmakers fail to investigate the reasons behind the escalating costs of American colleges and universities, a significant number of Americans will find themselves unable to afford higher education.
NO!! What an ahole!!! I have my own debt to pay off!!!!!
This is so typical of the Pedo Joe administration. Rules and rulings mean nothing to him. Sadly, he will get away with it as he does everything.
Biden is arrogant as he is dumb ! And as far as intelligence , the by product from the Southend of a northbound dem party mascot leaves old Joey lagging way behind .
Let the students pay it off as I did and as my son did and many thousands of others have done! Have those current borrowers quick looking for others to bail them out, it’s their debt so pay it, bunch of freeloaders! Besides that current colleges and universities are a joke anyway , tell Biden to get the universities to do a better job at real education and cut their fees and tuition!
He is just trying to buy votes , you’d think these “smart” college students would see that! Quit wasting my tax money for dumb ideas!
That is ridiculous! How is the person who could not afford student loans going to pay your bills, because you made poor decisions for your future?
Cardona said these people earned this forgiveness. They earned nothing. They spent their money irresponsibly and want others to pay. This should also be challenged. This administration is totally irresponsible in everything they do. Pathetic display of failure.
Since the Pell Grant is a grant that does not have to be payed back, why the issue?
No matter which way you spin this, it will fall on the American Taxpayers again. Again the democRATS spend more than we have, and our grandchildren will be paying this in 30 years from now. I am waiting for the war with Russia to start so we can make the rich even richer while our young men and women die again. A terrible cycle for the middleclass.
Biden needs to be sued and now! He can’t cancel a contract legally!