Biden’s Department of Education to Cancel $39B in Student Loans; Biden Cancels $39 Billion in Student Loans on Heels of Supreme Court Ruling; Biden Administration to Wipe Out $39 Billion in Student Loans for 800,000 Borrowers

Biden’s Department of Education to cancel $39B in student loans

President Biden’s Department of Education announced Friday it would cancel $39 billion in federal student loans for more than 800,000 borrowers within the next month.

In a statement, Education Secretary Miguel Cardona called the move a “historic step,” but Republicans were livid.

“For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness,” Cardona said.

“Today, the Biden-Harris Administration is taking another historic step to right these wrongs and announcing $39 billion in debt relief for another 804,000 borrowers.”

“By fixing past administrative failures, we are ensuring everyone gets the forgiveness they deserve, just as we have done for public servants, students who were cheated by their colleges, and borrowers with permanent disabilities, including veterans,” Cardona added about the new plan.

“This Administration will not stop fighting to level the playing field in higher education.” —>READ MORE HERE

Biden cancels $39 billion in student loans on heels of Supreme Court ruling

The Biden administration is canceling $39 billion in student loan debt for more than 804,000 borrowers, just weeks after the Supreme Court declared unconstitutional the president’s broader student-loan forgiveness program.

Democrats say forgiving student loans is important to motivating their base to turn out in the 2024 election, while Republicans accused Mr. Biden of trying to circumvent the nation’s highest court for political gain.

The Education Department announced Friday that it will automatically cancel future loan payments for qualified borrowers because of administrative “failures” in loan programs over the years.

“For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress toward forgiveness,” Education Secretary Miguel Cardona said in a statement. “By fixing past administrative failures, we are ensuring everyone gets the forgiveness they deserve.”

The department will automatically cancel future loan payments for borrowers affected by the errors whose debts should have been forgiven after 20 or 25 years.

The move comes after the Supreme Court this month rejected President Biden‘s centerpiece student-loan forgiveness program that sought to forgive up to $20,000 in debt for 43 million federal borrowers, or a total of up to $400 billion.

It would have been the most expensive executive action in history, according to the justices. The high court ruled that the president did not have the authority to implement the plan without congressional approval. —>READ MORE HERE

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