The Biden administration has announced that President Biden will forgive an additional $1.2 billion in student loan debt, while Republicans plan to eliminate the program.
According to a statement provided to PoliticusUSA:
The Biden-Harris Administration today announced it will automatically forgive $1.2 billion in loans for approximately 153,000 borrowers who qualify for reduced forgiveness under President Biden's Saving on a Valuable Education (SAVE) plan. . The move comes as there are currently 7.5 million borrowers enrolled in SAVE, 4.3 million of whom have $0 monthly payments.
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Borrowers will begin receiving emails today from President Biden informing them that they have been approved for forgiveness and do not need to take any further action to receive relief. In the coming days, servicers will process forgiveness and borrowers will see their loans forgiven on their accounts. Going forward, borrowers who meet the eligibility criteria for forgiveness under the SAVE Plan will have their loans automatically forgiven without them having to take any action.
President Biden has set the best record of student loan forgiveness of any president in U.S. history. The Biden administration has forgiven loans totaling $138 billion to 3.9 million borrowers.
Senior administration officials said on the call we participated in that Biden’s student loan forgiveness efforts will especially help Black borrowers.” It is true that black borrowers are more likely to receive loans. They borrow larger amounts and generally have difficulty repaying and making student loan programs. Being more equitable is an important step toward addressing racial inequality and opportunity in our country. The SAVE Plan is the most affordable way to repay student loans for most borrowers. And this is especially helpful for people with larger amounts of debt. So we expect this to be a valuable tool in helping many black bars and many graduates of historically black colleges and universities repay their student loans or obtain loan forgiveness. .”
Republicans want to kill Biden's student loan forgiveness
According to the Capitol News Service, House Republicans are trying to pass a bill called the College Cost Reduction Act that would repeal Biden's student loan forgiveness program.
The bill proposes numerous programs to strengthen the integrity of the nation's higher education institutions, but it could also derail many of President Joe Biden's efforts to help students get into college. Democrats on the committee proposed a series of bill amendments to block the Republican repeal, but they all failed.
Fox said, “Unfortunately, President Biden has decided time and time again that the executive branch should also hold the legislative pen,” and “Congress has the task of making laws that reflect the interests of the people.” “It is not his role as an executive pen,” he said.
Elections have consequences. If Trump returns to the White House, Biden's student loan forgiveness program will be repealed and borrowers will no longer be able to benefit from President Biden's proposed student loan relief.
The Biden administration is doing its best to help student loan borrowers even as Republicans are plotting to make their lives harder. The media doesn't talk about it, but the choices voters make in November will have a direct impact on the lives of millions of student loan borrowers.