President Joe Biden announced new plans on Monday to cancel student debt and provide relief to millions of borrowers, including those who are eligible for forgiveness programs and those experiencing hardships. The administration’s goal is to nullify runaway interest, eliminate debt for certain eligible borrowers, and provide relief to those enrolled in low financial value programs. These actions, when combined with previous efforts, will benefit more than 30 million Americans by providing relief to 23 million borrowers, canceling debt for over four million, and giving at least $5,000 in relief to more than 10 million others.
The revised plans come after the Supreme Court struck down Biden’s original proposal to cancel up to $20,000 in debt for 43 million eligible borrowers. These new actions are part of the administration’s broader efforts to address the disproportionate burden of student debt faced by Black, Latino, and other vulnerable communities. Vice President Kamala Harris, second gentleman Doug Emhoff, and Education Secretary Miguel Cardona are traveling to various cities to highlight the administration’s initiatives and meet with borrowers who have benefited from the relief provided.
Education Secretary Cardona emphasized during a press call that the revised plans will provide borrowers with breathing room and freedom from feeling overwhelmed by their student loan bills. The new rule-making process under the Higher Education Act aims to provide relief to borrowers who have been struggling to make loan payments. The administration’s goal is to end the cycle of working hard and still watching loan balances grow, month after month. Senate Majority Leader Chuck Schumer praised Biden’s actions, calling them a response to Congress’ call for increased student debt relief and a commitment to providing opportunities for higher education to all.
The administration’s efforts to provide relief to student loan borrowers are seen as crucial in alleviating financial burdens and making education more accessible for all. By addressing the challenges faced by borrowers in making loan payments and offering debt cancellation for eligible individuals, the administration is taking steps to ensure that higher education is a pathway to the middle class for everyone. These actions reflect a collaborative approach between the executive branch and Congress to address the pressing issue of student debt and provide much-needed relief to millions of Americans.
