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Biden admin continues to ignore Supreme Court ruling — wipes out another $1.2 billion in student loan debt

The Biden administration announced Wednesday morning that it has approved an additional $1.2 billion in federal student loan debt cancellation, according to the White House. press release.

According to a recent statement, around 153,000 borrowers currently enrolled in the government’s ‘Precious Education Savings’ repayment plan will have their debts cancelled.

Borrowers who enroll in SAVE, borrow $12,000 or less, and have made payments for at least 10 years are eligible for the debt forgiveness plan. However, those who borrowed more than $12,000 may have their loans canceled.

“For each additional $1,000 borrowed initially by a borrower, relief will be available after an additional year of payments,” the White House explained. “For example, borrowers who enroll in SAVE and take out federal loans of $14,000 or less to earn an associate’s degree in biotechnology will receive full debt forgiveness starting this week if they have repaid them for 12 years. .”

Eligible borrowers will begin having their loans canceled as early as this week.

“Originally scheduled for July, the Biden-Harris Administration has implemented this SAVE provision, providing relief to borrowers nearly six months ahead of schedule,” the White House added.

According to the announcement, the forgiveness plan is intended to “help community college and other borrowers with small loans and put more students on track to get out of their student loans faster than ever before.”

“Under the Biden-Harris Administration’s SAVE plan, 85% of prospective community college borrowers will become debt-free within 10 years,” the White House said.

The Biden administration has so far approved the cancellation of about $138 billion in federal student loans, which will be passed on to American taxpayers. The White House says Biden has “cancelled more student loans than any president in history” despite “Republicans in Congress and their allies” trying to “block” the administration “every step of the way.” It was advertised.

The government claims the debt forgiveness plan will “fix the student loan system and ensure higher education is a path to the middle class”.

To avoid a June Supreme Court ruling blocking Mr. Biden’s plan to broadly cancel federal student loans, the administration has rolled out several similar, but smaller, forgiveness plans.

The Biden administration announced in January that it would cancel more than $5 billion in federal student loan debt for 74,000 borrowers.

A study released last month by Intelligent.com found that millions of student loan borrowers are refusing to pay off their debts in hopes of pressuring the federal government to initiate unilateral cancellations. found.

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