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Important points
- The Biden administration is canceling $7.7 billion in student debt for 160,000 borrowers.
- This brings the total number of beneficiaries to 4.75 million, with each receiving an average of over $35,000 in support.
President Biden today announced that his administration is forgiving $7.7 billion in student loans for 160,000 borrowers. This latest action brings the total number of Americans who have benefited from debt relief under Biden to 4.75 million, with each of them receiving an average of over $35,000 in debt relief.
Newly forgiven debts include those of people enrolled in the administration's SAVE student loan repayment plan, public employees such as teachers, nurses and law enforcement officers, and borrowers made eligible by recent income-driven repayment (IDR) corrections had relief. Plans.
Ongoing loan forgiveness
Today's announcement builds on three years of significant progress in relieving and reforming the higher education system. Among the administration's key achievements is the largest increase in the maximum Pell grant in over a decade, ensuring more low-income students can afford higher education. Additionally, significant improvements to the Public Service Loan Forgiveness (PSLF) program have ensured that public employees receive the debt relief to which they are legally entitled.
President Biden highlighted these achievements, saying, “From day one of my administration, I promised to fight to make higher education a ticket to the middle class, not a barrier to equal opportunity. I will never stop fighting to cancel student debt – no matter how many times elected Republicans try to stop us from doing so.”
Impact on borrowers
For the 160,000 borrowers who will benefit from today's announcement, the relief is both meaningful and timely. These individuals represent a diverse cross-section of the American public, including those who have dedicated their careers to public service and those struggling under the burden of student debt.
The average cancellation amount of over $35,000 per borrower represents significant financial relief and can potentially transform the economic future of these individuals and their families. By reducing or eliminating monthly loan payments, the government's actions help borrowers achieve greater financial stability and open up opportunities for homeownership, retirement planning and other essential aspects of economic well-being.
It's important to note, however, that those receiving debt relief were already enrolled in programs like PSLF or income-based repayment and should have already received them. This debt relief is not due to a new initiative or “across-the-board” government program. Rather, the government is executing existing programs and ensuring Americans receive the debt relief they deserve.
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What is the SAVE repayment plan?
What is the SAVE repayment plan?
Editor: Colin Graves
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