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President Biden to Forgive Over $39 Billion in Student Loans for over 800,000 Borrowers

US Department of Education to cancel $39 billion in student loans.

The Department of Education under President Joe Biden recently made a groundbreaking announcement on July 14th, stating that they will be canceling $39 billion in federal student loans for over 800,000 borrowers within the next month. This move is being hailed as a historic step towards addressing the flaws in the system that have left many borrowers struggling.

Education Secretary Miguel Cardona expressed his enthusiasm for this decision, emphasizing the need to rectify the failures of the past. He acknowledged that borrowers have long been neglected by a broken system that failed to accurately track their progress towards loan forgiveness. With this new plan, the Biden-Harris Administration aims to right these wrongs and provide debt relief for an additional 804,000 borrowers.

Cardona highlighted the importance of fixing past administrative failures to ensure that everyone receives the forgiveness they rightfully deserve. He drew attention to the successful efforts made by the Administration in providing forgiveness to public servants, students who were deceived by their colleges, and borrowers with permanent disabilities, including veterans. The commitment to leveling the playing field in higher education remains a top priority for this Administration.

However, the Biden administration has faced criticism from Republicans who argue that the loan forgiveness plan is a political maneuver to bypass the Supreme Court's recent decision. The Court overturned an earlier Education Department scheme to cancel $400 billion in student debt, leading to accusations of the administration disregarding the rule of law. Representative Virginia Foxx, who chairs the House Education and Labor Committee, condemned the administration's actions, accusing them of prioritizing political gain over the well-being of borrowers and the rule of law.

Since President Biden took office, the Education Department has already forgiven an impressive $116.6 billion in federal debt held by over 3.4 million students. The new plan focuses on forgiving loans for borrowers who have diligently made payments for either 20 or 25 years, depending on the time they borrowed the money and their chosen payment plan. This move is seen as honoring the commitment made to borrowers who have dedicated decades to repaying their loans.

Education Under Secretary James Kvaal expressed the importance of upholding the promises made to borrowers who have fulfilled their repayment obligations. This decision serves as a testament to the Biden administration's dedication to addressing the burdensome student loan crisis and ensuring a fairer future for all borrowers.

In conclusion, the Department of Education's announcement to cancel $39 billion in federal student loans is a significant step towards rectifying the flaws in the system. While facing criticism from Republicans, the Biden administration remains committed to providing relief to borrowers who have been burdened by their loans. The focus on honoring repayment commitments and leveling the playing field in higher education showcases the administration's determination to address the challenges faced by borrowers. This decision sets a precedent for a more equitable and accessible education financing system.

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