Biden administration notifies borrowers of student loan forgiveness

0
19


U.S. President Joe Biden speaks about administration plans to forgive federal student loan debt during remarks in the Roosevelt Room at the White House in Washington, U.S., August 24, 2022.

Leah Millis | Reuters

Around 813,000 student loan borrowers will begin to receive an email from President Joe Biden notifying them that their debt has been forgiven because of his actions.

Many borrowers who will get the email likely already knew about the loan cancellation and may have already received that relief. The message directly from the president, less than a year ahead of the 2024 presidential election, makes it clear who was responsible for the relief.

Biden has erased $127 billion in student debt so far for more than 3.5 million borrowers — more than any other president in history.

More from Your Money:

Here’s a look at more stories on how to manage, grow and protect your money for the years ahead.

The Biden administration used existing programs, including Public Service Loan Forgiveness and income-driven repayment plans, to deliver the debt cancellation. Previously, the relief under these programs was hard to access.

“The president is committed to fighting for hardworking American families, making sure we get them a little more breathing room, and allowing them to support themselves and their families,” a White House official said on Tuesday.

Biden’s plan to cancel up to $400 billion in student debt for tens of millions of Americans was rejected over the summer at the Supreme Court.

Republican nominees for president oppose student loan forgiveness.

Chris Christie, the former New Jersey governor, has said that Biden didn’t have the authority to cancel student debt without prior authorization from Congress.

“He knows he’s done something that is illegal and over the top,” Christie said on ABC’s “This Week” in 2022, shortly after Biden announced his broad forgiveness plan.

Former president Donald Trump sided with the Supreme Court.

“Today, the Supreme Court also ruled that President Biden cannot wipe out hundreds of billions, perhaps trillions of dollars, in student loan debt, which would have been very unfair to the millions and millions of people who paid their debt through hard work and diligence; very unfair,” Trump said at a campaign event in June.

Florida Governor Ron DeSantis has said that it’s wrong to saddle taxpayers with the expense of student loan forgiveness.

“Why should a truck driver have to pay for somebody that got a degree in zombie studies?” DeSantis said at an Iowa event in early August. “It doesn’t make sense.”

Voters support forgiving at least some student loan debt by a 2-to-1 margin, according to a Politico/Morning Consult poll. Less than a third oppose the policy.



Source : CNBC