(NewsSpace.com) – The Biden Administration has been working to forgive student loan debt for millions of borrowers. When its major plan was shut down by the Supreme Court, officials sought to find other ways to provide relief. By February, more than 3 million borrowers collectively had about $138 billion in loans forgiven. More came in March, and most recently, on April 12, the White House announced it was forgiving even more.
The new round of forgiveness, which will affect 277,000 people, is aimed at those “enrolled in the [Saving on a Valuable Education] SAVE Plan, other borrowers enrolled in Income-Driven Repayment plans, and borrowers receiving Public Service Loan Forgiveness.” The total of this comes to $7.4 billion.
According to the Department of Education, 206,800 of those borrowers have made at least 10 years of payments on loans totaling $12,000 or less. An additional $3.6 billion will be attributed to fixes in the income-driven repayments that weren’t tallied properly, while the final $300 million is to do the same for those in the Public Service Loan Forgiveness program.
The SAVE Plan is the newest available, created by the Biden Administration, and more than 8 million people have enrolled in it so far. The main purpose behind it was to lower payments and put loan holders on the fast track to forgiveness.
However, many people have concerns about Biden’s continued forgiveness of student loans. The Republican Party is particularly concerned and is promising to reverse the president’s actions. In March, 11 attorneys general filed a lawsuit against the administration, claiming the federal government is breaking the law, circumventing the Supreme Court ruling and Congress’s efforts to provide relief. The coalition, led by Republican Kansas Attorney General Kris Kobach, is suing the administration, the Department of Education, and Education Secretary Miguel Cardona. They don’t want the American public on the hook for canceled debts. The case is still making its way through the courts.
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