See how much student loan debt Biden has canceled

See how much student loan debt Biden has canceled - Business and Finance - News

President Biden’s Student Debt Relief Efforts: Achievements and Ongoing Initiatives

Despite the setback of the Supreme Court’s decision last year, which invalidated President Joe Biden’s one-time student loan forgiveness program, he has still managed to make a significant impact on student debt relief. With the November elections approaching, Biden’s team is highlighting his accomplishments in this area.

Approved Student Loan Debt Cancellations

Since taking office, the Biden administration has approved the cancellation of approximately $138 billion in federal student loans, benefiting around 3.9 million borrowers. These debt relief measures have come through various existing programs designed to help struggling borrowers.

Impact of Debt Cancellations

The relief measures amount to about 9% of the $1.6 trillion in federal student loan debt currently held by borrowers, making a substantial difference for those whose debts have been canceled. Although not as extensive as his broad forgiveness program, these actions represent one-third of the amount that would have been forgiven if it had been implemented.

Existing Student Loan Forgiveness Programs

Biden’s administration has made use of existing programs to provide relief to specific groups of borrowers, such as public-sector workers (Public Service Loan Forgiveness program), defrauded students (borrower defense to repayment program), and totally and permanently disabled individuals. None of these programs expire, ensuring ongoing benefits for eligible borrowers.

Addressing Administrative Errors and Expanding Reach

Biden’s administration has also made an effort to correct past administrative errors related to borrowers’ student loan accounts and expand the reach of certain programs, enabling more individuals to qualify for debt relief.

Chipping Away at Student Loan Forgiveness Backlog

The administration’s actions have helped alleviate a backlog of student loan forgiveness applications left from the Trump administration, which slowed processing and limited some relief programs.

New Income-Driven Repayment Plan

The administration introduced the Student Loan Debt Relief for Borrowers with Low Income and Small Debts (SAVE) plan, which offers more generous terms for low-income borrowers. Under this new plan, those who originally borrowed $12,000 or less will have their remaining debt canceled after making payments for at least 10 years.

Future Student Debt Relief Efforts

The Biden administration continues to explore alternative paths toward implementing a broad student loan forgiveness program, relying on different legal authorities and undergoing the lengthy rulemaking process. This initiative remains in progress.

Public Opinion

A Reuters/Ipsos poll conducted in January found that 46% of US adults believe Biden has the “best approach” to lowering student debt burdens, compared to only 22% for former President Donald Trump.

Comparing Biden’s Student Loan Relief Actions to Democratic Leaders’ Calls

Biden’s student loan relief efforts have fallen short of some Democrats’ expectations, including Senate Majority Leader Chuck Schumer and Massachusetts Sen. Elizabeth Warren, who advocated for $50,000 in debt cancellation per borrower.