Biden Administration Cancels $7.7B in Student Loans
Summary from the AllSides News Team
The Biden administration is canceling another $7.7 billion in student loans for 160,000 borrowers.
Key Details: Under the Department of Education's Saving on a Valuable Education (SAVE) plan, eligible borrowers will have an average of $35,000 in debt written off. The combined total cost to taxpayers could reach $1.4 trillion, according to the nonpartisan Committee for a Responsible Federal Budget.
Key Quote: “Today, my administration is canceling student debt for 160,000 more people, bringing the total number of Americans who have benefitted from our debt relief actions to 4.75 million,” Biden said in a statement.
For Context: Last June, the Supreme Court struck down Biden's authority under the HEROES Act to forgive student loans. In addition, GOP-led states have launched lawsuits claiming that Biden has no legal authority to spend money without Congressional approval.
How the Media Covered it: The Washington Examiner (Lean Right bias) noted that this announcement is the latest in a series of moves Biden has made to forgive student debt before the 2024 election to attract younger voters. The Associated Press (Lean Left bias) noted that the Biden administration plans to accelerate certain provisions of SAVE as the proposal goes through a lengthy rulemaking process.
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From the Center
Student Loan Update: Biden Cancels $7.7 Billion of Debt
President Joe Biden announced on Wednesday that he is canceling some $7.7 billion in student debt for another 160,000 borrowers.
The latest relief will go to borrowers in three categories: almost 67,000 borrowers who are eligible for debt cancellation through the Public Service Loan Forgiveness program, approximately 54,000 who are enrolled in a new income-driven repayment plan, and 39,200 enrolled in earlier income-driven plans.
The administration has been announcing new rounds of forgiveness as more people qualify under those categories.
"From day one of my administration, I promised to fight to ensure higher...
From the Left
Biden administration canceling student loans for another 160,000 borrowers
The Biden administration is canceling student loans for another 160,000 borrowers through a combination of existing programs.
The Education Department announced the latest round of cancellation on Wednesday, saying it will erase $7.7 billion in federal student loans. With the latest action, the administration said it has canceled $167 billion in student debt for nearly 5 million Americans through several programs.
“From day one of my administration, I promised to fight to ensure higher education is a ticket to the middle class, not a barrier to opportunity,” President Joe Biden said in a statement. “I...
From the Right
Biden announces another $7.7 billion in student loan cancellation
President Joe Biden has announced another $7.7 billion in student loans will not need to be repaid, with those who stand to benefit having an average of $35,000 in debt written off.
“Today, my administration is canceling student debt for 160,000 more people, bringing the total number of Americans who have benefitted from our debt relief actions to 4.75 million,” Biden said in a prepared statement.
The president said the new round is for loanees enrolled in the Department of Education’s new SAVE Plan, public service workers such as teachers, nurses, and police officers, or people who...
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