President Joe Biden’s administration on Wednesday forgave an additional $7.7 billion in student loan debt for about 160,000 borrowers.
The president announced in a document statement He claimed to have forgiven the debts of applicants such as teachers, nurses and law enforcement officers who enrolled in the government’s Savings for Valuable Education (SAVE) repayment plan. In a 6-3 decision, the Supreme Court blocked the Biden administration’s June 2023 plan to use executive power to provide student loan forgiveness to about 40 million Americans. In response to this ruling, the President’s SAVE plan was announced. (Related: Biden administration’s new student loan plan includes $0 payments for millions, no penalties for a year)
“Today’s announcement builds on the great progress we’ve 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
U.S. President Joe Biden speaks while announcing a new plan for federal student loan relief during a visit to Madison Regional Technical College Tuax Campus in Madison, Wisconsin, U.S., April 8, 2024.Reuters/Kevin Lamarque
The president’s statement said Biden has forgiven the student loans of 4.75 million Americans.
The president’s previous action to cancel $7.4 billion in student loan debt for 277,000 students through the SAVE plan was expected to cost Americans about $84 billion, according to the Penn Wharton Budget Model. That $84 billion is in addition to the $475 billion the administration is expected to spend on other programs it previously announced, according to the Penn Wharton Budget Model.
Biden announced a new plan in August 2023 to use the 2003 HEROES to cancel up to $10,000 in student loan debt for non-Pell Grant recipients and up to $20,000 for Pell Grant recipients. activity Following the Supreme Court’s decision. Under the law, the Secretary of Education has the authority to “waive or modify” student financial aid program provisions to ensure that recipients “are not placed at an economic disadvantage” during a national emergency.
