Over $11.5 billion in student loans for chosen categories of debtors have been forgiven by the federal government during President Joe Biden’s administration.
Now, according to the Education Department, a fresh wave of relief is on the way, with notifications of around $2 billion in federal debt forgiveness being sent in the coming weeks. Borrowers should check their email inboxes, according to Education Secretary Miguel Cardona.
Are you part of the program? Who is receiving this blessed benefit? Can the President of the United States really do this?
Maybe you weren’t aware that you qualified for one of the debt cancellations that have been given to around 600,000 debtors, who will now have more freedom to expand savings and invest money, as well as cope with other obligations.
But what happened to Biden’s proposal to reduce debt for every borrower, which he had supported? Lawmakers and activists who favor the cancellation of loan balances wonder why Biden is taking such a long time to make a decision. Another question I have is where are the fiscal conservatives challenging this type of move by the federal government?
Since the beginning of the year, the Biden administration has issued a succession of announcements, each of which has resulted in the elimination of student loan debt for a different category of borrowers.
It was revealed on Twitter earlier this week that more than 30,000 debtors, including veterans and military members, had been included in the current wave of debt cancellations. The government has already informed around 10,000 of individuals affected by the relief, and emails will be sent to a further 20,000 people over the coming two weeks.
At the same time, until January 31, 2022, the Biden administration would suspend all student loan repayments, interest payments, and collection efforts.
Let’s be honest: the amount of debt forgiveness provided by the administration so far pales in comparison to the entire $1.7 trillion in student loan debt borne by 45 million Americans.
During his presidential campaign, Biden said that he would want to have every borrower who has a federal student loan obligation forgiven of $10,000.
Senator Chuck Schumer, Senate Majority Leader, and other prominent Democrats have asked him to go much farther and eliminate $50,000 per person from the budget.
Democrat Chuck Schumer claims that Congress is too split to approve the plan as law and maintains that Vice President Joe Biden has the authority to impose sweeping pardon “with the flip of a pen.” Nancy Pelosi, the Speaker of the House, has expressed her disagreement with the president’s authority.
Biden’s administration said in April that it would investigate whether the vice president could take unilateral action, but has said nothing more on the subject since then. Activists and a few members of Congress are urging Biden to move quickly.
It is their opinion that lowering student debt burdens would boost the United States’ economy by freeing up cash that individuals might use for large purchases such as houses and vehicles, as well as for new company initiatives and other significant investments in their futures.
Just so you haven’t lost count. Here are other student loan debts canceled under Biden:
- $1.74 billion for public service employees, including teachers, first responders, nurses and others.
- $7.1 billion for borrowers with “total and permanent disability.”
- $1.1 billion for people who attended ITT Technical Institute, accused of misleading students before it closed in 2016.
- $55.6 million for people who attended three other trade schools that misrepresented themselves to students, according to the administration.
- $1 billion for additional borrowers who accuse schools of defrauding them.
If you ask me, it’s all poppycock!
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