Biden administration announced Friday will also “cancel” another $7.4 billion in federal student loan debt. 277,000 borrowersin spite of, The ever-growing mountain of lawsuits.
The White House says the current administration has approved $153 billion in so-called student loan “forgiveness.” Some of the cancellations were rolled out as part of the Savings on a Valuable Education Plan, a new income-driven repayment plan that sets monthly payments based on a borrower’s income. Approximately 8 million borrowers have enrolled in the program, and more than half of them have had their monthly payments reduced to $0. Over 1 million others enrolled in the SAVE plan pay less than $100 per month.
The Supreme Court last year rejected Mr. Biden’s attempt to provide blanket debt cancellation, but the administration has ignored the ruling and launched a number of smaller, similar plans to cancel borrowers’ debts. Announced. Following the court ruling, Mr. Biden reaffirmed his commitment to canceling his student loan debt.
“This latest debt cancellation comes on the heels of a new plan announced by President Biden that, if implemented, would combine with actions the administration has taken over the past three years to eliminate more than 30 million people. of Americans will have their student loans canceled. This week’s announcement reinforces the President’s commitment to use all available tools to provide student loan relief to as many borrowers as possible through a variety of actions. The White House said on Friday.
The cancellation affects borrowers enrolled in Biden’s SAVE plan and other income-based repayment plans, as well as individuals receiving Public Service Loan Forgiveness.
Republican lawmakers denounced the administration’s plan, saying it would shift the debt onto American taxpayers. Over the past few weeks, Republican attorneys general have filed two lawsuits against the White House, arguing that debt cancellation is illegal.
Kansas Attorney General Kris Kobach and 10 other states sued the administration in March, accusing Biden of ignoring the Supreme Court’s June ruling on debt cancellation.
In response to the complaint, the Biden administration’s Department of Education said, “The department does not comment on pending litigation.” But Congress gave the U.S. Department of Education authority to define the terms of income-based repayment plans in 1993, and the SAVE plan marks the fourth time the department has exercised that authority. ”
He added, “The Biden-Harris administration will not stop fighting to provide assistance and relief to borrowers across the country, no matter how many times Republican elected officials try to block it.”
On Tuesday, seven additional states, led by Missouri Attorney General Andrew Bailey, filed a separate lawsuit against the Biden administration’s attempt to circumvent the court’s decision.
Bailey criticized the programs as Biden’s “embarrassing attempt to buy the 2024 election in direct violation of the law.”
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