The Biden administration is making good on its promise to cancel more student loan debt.
In a move that comes nearly six months ahead of schedule, the administration announced that it would begin cancelling student loan debt for borrowers enrolled in the Saving on a Valuable Education plan who took out less than $12,000 in loans and have been in repayment for 10 years. The plan is intended to help community college and low-income borrowers. The Department of Education did not immediately respond to Axios about how many people will have their debt cancelled through the initiative or what the dollar amount of debt cancelled will be.
This latest cancellation of student loan debt is part of the administration’s ongoing efforts to provide relief to borrowers. Although the Supreme Court blocked President Biden’s major student loan forgiveness plan last year, his administration has found workarounds to cancel some $132 billion in loans for more than 3.6 million student borrowers. This move is aimed at giving borrowers breathing room so they can get out from under the burden of student loan debt and pursue their dreams.
President Biden has been a vocal advocate for student loan debt cancellation, arguing that it is necessary to address the student debt crisis. He has previously expressed support for cancelling up to $50,000 per borrower. While this plan falls short of that goal, it is still a significant step forward in addressing the problem of student loan debt.
The announcement is likely to be met with praise from students and advocates who have been calling on the administration to take action on the issue. Student loan debt has been a major issue for many Americans, with borrowers facing high interest rates and mounting debt that can be difficult to pay off. The COVID-19 pandemic has only exacerbated the problem, with many borrowers struggling to make ends meet.
The move by the Biden administration is a sign that they are committed to addressing the student debt crisis. While it may not be enough to fully solve the problem, it is a step in the right direction. The administration has signaled that it will continue to take action to provide relief to borrowers in the coming months and years.
In a statement, President Biden said that the move is “part of our ongoing efforts to act as quickly as possible to give more borrowers breathing room so they can get out from under the burden of student loan debt, move on with their lives and pursue their dreams.” For borrowers struggling with high levels of student debt, this announcement will come as a welcome relief.
