The US President Joe Biden’s administration has cancelled student debt for over 150,000 borrowers currently enrolled in the SAVE plan. In total, his administration has now approved nearly $138 billion in student debt cancellation for almost 3.9 million borrowers through various actions.
In addition to the news of debt relief, recipients of the email can expect to find a congratulatory message from President Joe Biden. This communication underscores the administration’s eagerness to highlight its efforts to tackle the issue of student loan debt, especially as the presidential election cycle gains momentum.
“From day one of my administration, I vowed to fix student loan programs so higher education can be a ticket to the middle class—not a barrier to opportunity,” the message reads.
Biden’s efforts to implement student debt relief suffered a notable setback when the Supreme Court rejected his flagship student loan forgiveness program last year.
“My MAGA Republican friends in Congress, elected officials, and special interests stepped in and sued us, and the Supreme Court blocked it. But that didn’t stop me,” Biden said Wednesday in brief remarks made at a small community library in Culver City, California
Despite the setback from the Supreme Court’s rejection of his signature student loan forgiveness program, President Biden’s administration has persisted in finding alternative avenues to assist borrowers.
Since Biden assumed office, nearly $138 billion of federal student loan debt has been canceled, benefiting close to 3.9 million borrowers.
When questioned about potential concerns regarding the Supreme Court’s stance on his latest student loan forgiveness initiative, Biden expressed confidence, stating, “I don’t have a worry at all.”
The most recent wave of debt relief targets borrowers enrolled in the newly introduced repayment plan named SAVE (Saving on a Valuable Education), launched by the administration in August amidst the conclusion of the pandemic-induced pause on payments. Under the SAVE plan, remaining federal student loan balances are forgiven for individuals who initially borrowed $12,000 or less and have diligently made payments for at least a decade.
Initially, debt relief under SAVE was slated to commence in July. However, the Biden administration announced last month that it would kick off ahead of schedule in February.
The majority of federal student loan debt cancellations under Biden’s tenure have occurred through pre-existing programs predating his presidency. These programs typically cater to specific borrower categories, including public-sector workers, individuals defrauded by for-profit colleges, and borrowers who have diligently repaid loans for at least two decades.
Under Biden’s leadership, the Department of Education has overseen the cancellation of more federal student loan debt than any prior administration. This achievement is attributed in part to temporary expansions of select debt relief programs and the rectification of past administrative errors concerning borrowers’ student loan accounts.
