Mon. May 20th, 2024

Student debt canceled 74k borrowers White House loan forgiveness

By 37ci3 Jan19,2024

WASHINGTON – The Biden administration on a new wave of student loan forgiveness He wrote off $5 billion in debt For 74,000 borrowers, many of them have worked in the public sector for more than ten years.

President Joe Biden said Friday that 44,000 of the approved borrowers have had their student loans erased after 10 years of community service, and those borrowers include teachers, nurses and firefighters. About 30,000 borrowers have worked toward repayment for at least 20 years but “never had the flexibility they’ve earned through income-driven repayment plans,” Biden said.

This is the final phase of the loan forgiveness effort The Supreme Court overruled The White House’s plan to reduce student loan debt last year. Since the ruling, the White House has been on a roll series of minor relief programs.

“My Administration is able to provide relief to these borrowers — and millions more — thanks to our fixes to broken student loan programs that prevent borrowers from getting relief under the law,” Biden said Friday.

The new cancellations bring to 3.7 million the total number of people whose debt has been written off under the Biden administration, the White House said.

Management announced this month The White House said it would cancel federal student debt for some borrowers with less than $12,000 in federal loans. In December, Biden approved nearly $4.8 billion in student loan forgiveness for more than 80,000 borrowers.

The Supreme Court struck down Biden’s student loan relief plan in June, ruling that the program was illegal. Not expressly approved by Congress. The plan was designed to eliminate up to $20,000 in debt for about 43 million eligible borrowers.

In a statement Friday, Biden said after the Supreme Court’s decision, “we continue to pursue an alternative path to get student debt to as many borrowers as quickly as possible.”

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By 37ci3

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