OAN’s James Myers
8:24am – Wednesday, May 22, 2024
The Biden administration announced a massive new student loan benefit on Wednesday, saying $7.7 billion will be used to clear student debt for more than 160,000 people.
advertisement
The latest benefits fall into three categories of borrowers: those receiving Public Service Loan Forgiveness (PSLF), those enrolled in President Biden’s Savings for Valuable Education (SAVE) plan, and the time until forgiveness. They are eligible for reduced benefits. and those receiving income-driven repayment (IDR) forgiveness as a result of amendments by the government.
The benefits include $5.2 billion to 66,900 borrowers through modifications to the PSFL and $613 million to 54,300 borrowers through the SAVE plan, which is will be given to borrowers enrolled in the SAVE plan who have taken out small loans for.
In addition, an additional $1.9 billion will be provided to 39,200 borrowers through administrative adjustments to the IDR payment volume, according to the Department of Education (DOE).
Meanwhile, the Biden administration’s latest announcement has eliminated a total of $167 billion in student loan debt for $4.75 million Americans, according to the DOE.
“The Biden-Harris administration remains committed to our commitment to providing student debt relief for millions more across the country, and this announcement is proof of that,” Education Secretary Miguel Cardona said in a statement. “I am doing so,” he said. “One in 10 federal student loan borrowers has been approved for debt relief, meaning one in 10 borrowers now have more financial means and a reduced burden.”
Additionally, the DOE issued an update on the timing of the payment frequency adjustment, asserting that the amendment will ensure that borrowers receive credit for IDR forgiveness and progress toward PSFL. Students have until June 30thth Apply for integration.
“Thanks to our continued efforts, an additional 160,000 borrowers and their families will receive much-needed relief.” [of] We have called for the Biden-Harris Administration to fix our broken student loan system,” said Education Under Secretary James Kvar. “We congratulate these borrowers on the forgiveness they deserve and will continue to work to bring relief to others.”
The Biden administration also seeks to eliminate more student loan debt by securing a $900 increase in the cap on Pell Grants and finalizing new rules to protect borrowers from “career programs that leave graduates with unpayable debt and inadequate earnings.”
“Today’s announcement builds on the great progress we have made for students and borrowers over the past three years,” Biden said in a statement.
“This includes the largest increase in Pell Grants in more than a decade. Public Service Loan funding to ensure that teachers, nurses, police officers, and other public servants receive the relief they are entitled to by law. Fix the forgiveness system. And hold universities accountable for taking advantage of students and families. And last month, all I’ve done is cancel the student loans of more than 30 million Americans. announced the administration’s new plan to
“From day one in office, I pledged to fight to ensure higher education is a ticket to the middle class, not a barrier to opportunity,” he continued. “No matter how many times Republicans try to stop us, I will never stop working to cancel student debt.”
The Supreme Court ruled in 2023 that the Biden administration overstepped its authority when it announced it would cancel up to $400 billion in student loans in 2022.
Republican-leaning states responded to student loan forgiveness measures by filing lawsuits challenging the measures.
Stay up to date. Receive breaking news directly to your inbox for free. Subscribe here: https://www.oann.com/alerts
Please share this post!
