(FixThisNation.com) – On Wednesday, the White House announced President Biden’s cancellation of another $1.2 billion in student loan debt which is expected to benefit over 150,000 borrowers.
The executive action was originally meant to be signed in July, however Biden moved forward with the activation of the Savings on Valuable Education (SAVE) plan policy which would cancel debt for enrolled borrowers who have been repaying their student loans for the last 10 years and are currently in debt by $12,000 or less. Those who have larger debts will also be able to receive relief after an additional year of payment for every $1,000 borrowed.
In a statement, the White House argued that the shortened forgiveness time is going to particularly help borrowers who went to community college or who have smaller student loans as it will allow them to achieve repayment faster. It pointed out that the Biden-Harris Administration’s SAVE plan will have around 85 percent of future community college borrowers be able to pay off their student loans within a decade.
Biden since first coming to office has erased close to $138 billion in federal student loans benefiting close to 3.9 million borrowers without the assistance of Congress. The student loan bailouts have been released following the U.S. Supreme Court’s initial block of Biden’s debt cancellation plan last year. That initial debt cancellation plan was going to cost the U.S. government over $400 billion.
The White House in its statement pointed out that from the start President Biden had vowed to fix the student loan system and to ensure that higher education was going to be available to the middle class rather than it being a barrier to them receiving further opportunities.
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