President Joe Biden announced he has canceled $9 billion in student loan debt for 125,000 Americans. Some critics are saying the Commander-in-Chief should have canceled even more.
A Big Announcement From President Biden
President Biden made a major announcement as far as student loan debt is concerned recently.
The Elimination of Student Loan Debt
The Commander-in-Chief revealed that his administration has figured out a way to cancel about $9 billion in student loan debt.
A Move That’ll Benefit Thousands of Americans
President Biden’s plan is expected to benefit about 125,000 Americans. “This kind of relief is life changing for individuals and their families,” he said.
The Best Backup Plan Possible?
President Biden’s announcement comes several months after the Supreme Court struck down his previous plan for dealing with student loan debt.
He had planned to help about 43 million Americans eliminate up to $20,000 in student loan debt each. It would have wiped out $400 billion in student loan debt altogether.
What Could Have Been
As he announced his new plan, President Biden alluded to the fact that millions of other Americans could have received student loan debt relief if not for Republicans getting in the way.
“The money was literally about to go out the door, but Republican elected officials and special interests stepped up and sued us,” he said. “The Supreme Court sided with them, snatching from the hands of millions of Americans thousands of dollars in student debt relief that was about to change their lives.”
How Student Loan Debt Relief Will Work
It took some hard work and creativity on the part of the Biden administration. However, they were able to find effective ways to wipe out $9 billion in student loan debt by tinkering with some of the existing programs that are in place.
Help for People Working in the Public Service Sector
About 53,000 Americans who have worked in the public service sector for at least a decade will receive the bulk of President Biden’s student loan debt relief.
Assistance for People on Repayment Plans
Roughly 51,000 Americans who have qualified for income-driven repayment plans will also benefit from President Biden’s student loan debt relief. They’ll secure around $3 billion through his plan.
A Helping Hand for People With Disabilities
Around 22,000 Americans with disabilities will also get some much-needed relief from President Biden’s plan. They’ll secure a little over $1 billion to make their student loan debt go away for good.
Just in Time for Hitting the Campaign Trail
Many experts believe President Biden is going to be quick to point out all the student loan debt he’s been able to eliminate on the campaign trail. It could help him earn a second term as President.
Could It Be Biden’s Saving Grace?
Some experts are even saying this could be the thing that puts President Biden over the top when the 2024 Presidential Election rolls around. “Biden has forgiven more student loan debt than any previous president,” one expert said. “It distinguishes him from other candidates who are campaigning for the nation’s highest office.”
Could It Backfire on Biden in a Big Way?
However, there are people who think President Biden’s plan to erase some student loan debt could actually end up backfiring on him. They’ve criticized him for not eliminating as much of this debt as he promised to when he was campaigning to try to become President last time around.
Calls for Biden to “Cancel It All”
Astra Taylor, the co-founder of a group called Debt Collective, was one of the people who criticized the President following his student loan debt announcement. “If the Department of Education can cancel this amount, it can cancel it all—meeting and exceeding the President’s commitment to borrowers currently being crushed by the chaotic return to repayment,” she said.
Is More Student Loan Debt Relief Coming?
As of right now, it doesn’t sound like President Biden will be able to cancel any more student loan debt prior to the 2024 Presidential Election. But he did introduce a 12-month “on-ramp” for those who will be starting to repay student loans after taking the last 3 years off from doing it due to the COVID-19 pandemic.
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