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President Joe Biden Cancels More Student Debt

President Joe Biden announced on Wednesday a decision to cancel $7.7 billion in student debt for an added 160,000 borrowers. The latest relief targets three categories of borrowers: approximately 67,000 qualifying for the Public Service Loan Forgiveness program, around 54,000 subscribed to a novel income-driven repayment plan and another 39,200 under older income-driven schemes.

As part of his commitment towards making higher education accessible, President Biden said, "I will never stop working to cancel student debt—no matter how many times Republican-elected officials attempt to hinder us."

With this recent action, the tally of student debt annulled by the Biden administration reaches $167 billion, aiding 4.75 million Americans. Education Secretary Miguel Cardona highlighted that one in 10 federal student loan borrowers have gained from some form of debt relief.

Cardona's statement underscores the administration's commitment, "One out of every 10 federal student loan borrowers approved for debt relief signifies one out of every 10 borrowers now enjoy financial breathing space."

Even amidst legal challenges faced by Biden's Saving on A Valuable Education (SAVE) plan from 18 states, the debt cancellation proceeds. These states argue that Biden needs Congressional approval to revise federal repayment schemes.

Biden recently revealed a revised proposal for massive debt cancellation that has been under development since the Supreme Court rejected his initial attempt last year. The earlier proposal aimed to erase up to $20,000 in federal student loans for those earning less than $125,000 annually or families earning less than $250,000. It was projected to cost $400 billion and would have alleviated the student debt of over 40 million individuals. However, the Supreme Court invalidated the proposal, accusing Biden of overstepping his authority.

The revamped plan employs a distinct legal rationale and prioritizes five types of borrowers, concentrating on those judged to be in dire need of assistance. It aims to provide relief to approximately 30 million borrowers. However, the estimated $127 billion expenditure has drawn criticism from Republicans.


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