In a significant development for American education, President Joe Biden has announced the cancellation of student loan debt for an additional 813,000 individuals, bringing the total amount of debt forgiven during his tenure to $127 billion, benefiting 3.5 million borrowers. This update was communicated to the former students via an email from President Biden himself, signifying a direct acknowledgment of the debt relief provided by his administration. This move is particularly noteworthy considering the Supreme Court’s June decision to reject Biden’s proposal to cancel $400 billion in student loans.
The email sent by President Biden to the beneficiaries conveyed a message of congratulations and emphasized the administration’s efforts in providing this much-needed relief. This recent action is in line with Biden’s commitment to alleviate financial burdens on American families and is seen as a strategic move in the lead-up to the 2024 presidential election, potentially appealing to younger voters.
A White House spokesperson echoed this sentiment, highlighting the president’s dedication to assisting hardworking American families by giving them “more breathing room” to support themselves and their families. Earlier in October, Biden’s administration had also canceled $9 billion in student loans, aiding 125,000 borrowers.
This initiative comes as a response to the financial challenges faced by many Americans, particularly as loan payments are set to resume after a three-year hiatus due to the COVID-19 pandemic. President Biden, in his remarks at the White House, addressed the widespread issue of burdensome student loan debt and its impact on economic opportunities for graduates.
He further articulated the broader economic benefits of this debt relief, suggesting that the absence of student loan payments would enable individuals to invest in other aspects of their lives, such as home ownership, starting a business, or family planning. This relief, according to the president, has a positive impact not only on individuals but also on the national economy.
Since Biden’s presidency began, approximately 3.6 million borrowers have had a total of $127 billion in student loan debt forgiven. The president reaffirmed his commitment to continuing efforts to alleviate student loan burdens, stating that this would not only benefit the economy but also significantly improve the lives of many Americans.
Despite the setback in June when the Supreme Court negated Biden’s comprehensive student loan forgiveness program, the administration has been seeking alternative means to provide relief. This includes leveraging various programs like public service loan forgiveness and the SAVE Plan, which links payments to borrowers’ income levels.
However, the Biden administration’s initial plan to distribute $430 billion in student loan relief faced criticism from the Government Accountability Office (GAO). The GAO’s report highlighted the lack of robust anti-fraud measures in the plan, pointing out flaws in the approval process and potential for fraud. It noted that over 12 million applications were approved without proper verification of information, and 2 million students were set for automatic approval based on self-reported income, raising concerns about eligibility and accuracy.
This report has drawn criticism from members of Congress towards President Biden and Education Secretary Miguel Cardona, calling attention to the need for more stringent oversight in the administration’s student loan relief efforts.