President Biden made a significant announcement on Wednesday, revealing his plans to cancel student debt for over 160,000 borrowers.
The latest batch of borrowers will receive $7.7 billion in loan forgiveness under the new plan, bringing the total relief provided by President Biden’s student debt actions to $167 billion for 4.75 million Americans. This loan forgiveness initiative is offered through several income-driven repayment (IDR) plans, including the newly established SAVE program.
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Around 160,000 individuals make up the group of borrowers included in the Biden administration’s SAVE plan. These borrowers consist of public service workers like teachers, nurses, and law enforcement officials, as well as individuals who were granted relief due to improvements made to IDR plans.
Biden made a campaign promise in 2020 to forgive student debt, and he is now intensifying his efforts to appeal to young voters before the upcoming November election.
In the previous month, the administration took a significant step by canceling student debt for over 277,000 borrowers. This action specifically focused on various groups, including public service workers, individuals on IDR plans, borrowers who were victims of school fraud, and those with disabilities.
Biden recently unveiled a proposal to provide assistance to a significant number of borrowers, totaling 25 million individuals. This aid will be extended to those enrolled in IDR plans, individuals who have taken part in low-value educational programs, people facing financial hardship, and borrowers whose debt has ballooned due to unpaid interest. It is important to note that this plan, once implemented, is likely to face legal challenges.
In June, the Supreme Court invalidated the president’s student debt relief plan. As a result, the latest plans are an attempt by the president to find an alternative solution.
