President Joe Biden has announced the approval of $9 billion in student loan forgiveness for 125,000 Americans.
This relief is the result of his administration’s efforts to reform various programs, including income-driven repayment plans and Public Service Loan Forgiveness. More than $5 billion of the aid will benefit 53,000 borrowers who have worked in public service for a decade or more, $2.8 billion will go to 51,000 borrowers enrolled in income-driven repayment plans, and $1.2 billion will be allocated to 22,000 borrowers with disabilities. This move is seen as a significant step by Biden in addressing the student debt crisis and may positively impact his chances for reelection.
This announcement follows a Supreme Court decision that struck down Biden’s plan to cancel up to $20,000 in student debt for millions of Americans. Many felt that plan was unfair to taxpayers who did not attend college and to college graduates who already paid off their loans.