In a final push to raise the total of borrowers who have benefited from debt forgiveness under his administration to over 5 million, President Joe Biden aimed to discharge federal student loans for more than 150,000 individuals on Monday. This action will elevate the total number of borrowers receiving loan forgiveness to over 5 million.
A press release issued by the Department of Education states that individuals who have been duped or defrauded by their institutions, people with severe disabilities, or public officials are eligible to have their debts forgiven.
Reducing student loan debt was one of Vice President Biden’s key campaign pledges during the 2020 election.
However, his efforts to carry out that commitment were met with legal impediments, the most notable of which was the Supreme Court’s decision to prohibit a proposal that would have reduced the debt for over 40 million people by up to $20,000 in total.
Following this, Biden decided to adopt less ambitious and more piecemeal initiatives to reduce loan debt.
Despite these efforts, the administration was able to forgive $183.6 billion to more than 5 million individuals by modifying the federal debt management programs that were already in place.
During a statement, Vice President Joe Biden said, “I am proud to say that we have forgiven more student loan debt than any other administration in the history of the world.”
Biden’s Final Push to Cancel Student Debt Brings Relief to Borrowers Defrauded by Schools and Public Servants
The most recent step taken by the Department of Education comes after it decided to withdraw its incomplete ideas for an alternate plan for widespread forgiveness, which had the potential to assist approximately 27 million borrowers.
In addition, that endeavour encountered obstacles, most of which came from solicitors general in Republican states.
During his campaign tour, President-elect Donald Trump voiced his severe disapproval of Vice President Joe Biden’s efforts to alleviate student debt.
It remains uncertain how much the new administration will uphold the Education Department’s attempts to revamp ineffective federal programs like income-driven repayment plans or the public service loan forgiveness program. However, most student debt initiatives launched by Biden will probably be abandoned by the incoming administration.
On Monday, Education Secretary Miguel Cardona made a remark about President Trump’s first administration during a call with reporters.
“The system was broken, and when these borrowers reached out for assistance, the previous administration showed little interest in fixing it,” Cardona said. “The system was broken.”
Despite making payments for as long as 25 years, some borrowers have not received the relief promised to them because of the mismanagement of federal student loan arrangements.
A representative for the Department of Education has said that employees are dedicated to working together with President Trump’s transition team.
