On Friday, the Biden administration announced it would move forward with the next round. federal student loan cancellationaccording to the White House press release.
“From day one in office, I vowed to fix the student loan system and ensure that higher education is a path to the middle class, not a barrier to opportunity. “We canceled the student loans of Americans” – providing life-changing relief to students and their families and creating the SAVE Plan, the most affordable student loan repayment plan ever,” the announcement said. .
The administration's efforts to “fix” the broken student loan system appear to involve only shifting the costs to taxpayer-paying Americans. Supreme Court Judgment In June, the government expressed the opinion that large-scale debt cancellations were illegal.
Last year, Biden proposed unilaterally canceling all $10,000 in federal student loan debt for individuals making less than $125,000 a year and couples making less than $250,000 a year. People who took Pell Grants could face an additional $10,000 in loan cancellations.
Blaze News previously reported that the Government Accountability Office found in November that Biden's sweeping debt cancellation program failed to put in place safeguards to protect the federal government from fraud. GAO said his 26 million borrowers who registered to receive relief were automatically approved without having to submit up-to-date income documentation.
Since the Supreme Court's decision to cancel the program, the Biden administration has rolled out several smaller, similar programs that have so far canceled more than $132 billion in debt for 3.6 million borrowers.
The White House on Friday vowed to cancel more debt through a precious education savings plan. According to the announcement, borrowers who borrow less than $12,000 and have made payments for at least 10 years will have their balances “immediately” reduced to zero.
“This measure will particularly help community college borrowers, low-income borrowers, and those struggling to repay their loans,” the administration said.
Biden encouraged all federal student loan borrowers to enroll in the SAVE plan, noting that 6.9 million have already enrolled and 3.9 million are currently paying $0 per month. Under this plan, repayments are capped at 5% of the borrower's monthly income.
“Following the Supreme Court's ruling on the Student Debt Relief Plan, we continue to pursue alternative avenues to provide student debt relief to as many borrowers as possible as quickly as possible. I decline to use any tools We are free to give student loan borrowers the relief they need to realize their dreams,'' the White House concluded.
Biden wrote in a subsequent post. X“Imagine checking your student loan balance and seeing $0.00? Starting next month, many Americans enrolled in our SAVE plan will be able to reduce their student loan balance through a variety of measures. They will join the 3.6 million people who already have had their student loans canceled by the administration.”
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