Biden Admin. Forgives $4.8B in Student Debt for 80K Borrowers

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Facts

  • On Wednesday, the Biden Administration announced another round of student loan forgiveness totaling $4.8B for 80.3K borrowers.1
  • The announcement brings the total loan forgiveness by the Biden Administration to $132B for 3.6M borrowers. The new debt relief will be applied because of amendments made to the Income-Driven Repayment plans and will also forgive a significant amount for borrowers who have signed up for the Public Service Loan Forgiveness program.2
  • In response to the new tranche of relief, President Biden said, 'From Day One of my Administration, I vowed to improve the student loan system so that higher education provides Americans with opportunity and prosperity — not unmanageable burdens of student loan debt.'3
  • The US Secretary of Education, Miguel Cardona said, 'Before President Biden took office, it was virtually impossible for eligible borrowers to access the student debt relief they rightfully earned…The data released today once again makes clear that the Biden-Harris Administration’s relentless efforts to fix the broken student loan system are paying off in a big way.'4
  • This latest announcement comes five months after the Biden Administration’s plan for wide-sweeping debt relief was derailed by the US Supreme Court. Since that time, the Administration has announced multiple rounds of relief.5
  • While the initial effort was shot down by the Supreme Court, the Administration has vowed to continue to explore routes to broad student loan debt forgiveness for Americans.6

Sources: 1CNBC, 2U.S. Department of Education, 3CBS, 4FOX News, 5New York Daily News and 6Bloomberg.

Narratives

  • Democratic narrative, as provided by NBC. While it is unfortunate that the Supreme Court has decided to stand in the way of much-needed debt relief for Americans, the Biden Administration has many more tools in the box to help borrowers. Democrats have banded together to implore the President to use his executive authority to reduce the outstanding debt and reduce the cost of higher education so that future generations of students are not crippled with this undue and unjust burden.
  • Republican narrative, as provided by The Hill. SCOTUS was clear in the authorities provided to the President when it comes to student loan debt relief. These announcements of new debt relief rollouts are shameful and an intentional plan by the Administration to circumvent the decision of the high court. While trying to appease his far-left followers, the President has alienated and disenfranchised the Americans who took responsibility and paid off their debts with no help from a socialist government — a move that will surely be reflected at the polls.

Predictions