Biden cancels $39 BILLION in student debt for 804,000 Americans
President Joe Biden will forgive $39 billion in student debt for 804,000 Americans — two weeks after the Supreme Court struck down his $430 billion bailout.
Borrowers who have been making payments for between 20 and 25 years will see their debts forgiven as a result of repairs in the system that calculates the payment plans.
“For far too long, borrowers fell through the cracks of a broken system that failed to accurately track their progress toward forgiveness,” said Education Secretary Miguel Cardona.
Today, the Biden-Harris administration takes another historic step to right these wrongs and announces $39 billion in debt relief for an additional 804,000 borrowers.
The Supreme Court judges ruled in a 6-3 decision that the Secretary of Education had no authority to clear the debts of 20 million borrowers.
President Joe Biden will forgive $39 billion in student debt for 804,000 Americans — weeks after the Supreme Court struck down his multi-billion dollar aid plan. Biden is pictured Thursday night returning from Europe
Under Biden’s plan, those making less than $125,000 a year would have received $10,000 relief, while Pell Grant recipients would have wiped out $20,000.
The judges in the majority ruled that Biden should have received congressional approval first.
It prompted Biden to devise a new way to wipe out the debts of millions of Americans and fulfill a promise he made during his presidential campaign.
“By resolving past administrative failures, we ensure everyone gets the forgiveness they deserve, just as we have done for government officials, students who cheated on their colleges, and borrowers with permanent disabilities, including veterans,” Cardona added please.
Supreme Court judges ruled in a 6-3 decision that the education minister had no authority to clear the debts of 20 million borrowers
‘This cabinet will not stop fighting for a level playing field in higher education’.
These fixes are part of the Department’s commitment to address historic failures in the administration of the federal student loan program that failed to account for qualifying payments made under IDR plans that should have brought borrowers closer to forgiveness. ‘, according to the guidelines of the Ministry of Education. .
“Borrowers are eligible for a waiver if they have accrued the equivalent of 20 or 25 years of qualifying months.”