Biden forgives $39 BILLION in student debt for 804,000 Americans: White House goes around Supreme Court ruling to give relief to borrowers who have been paying for 20 years
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 relief plan.
Borrowers who have been making payments for between 20 and 25 years will have their debts wiped due to fixes in the system that calculates repayment plans.
‘For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness,’ said Secretary of Education Miguel Cardona.
‘Today, the Biden-Harris Administration is taking another historic step to right these wrongs and announcing $39 billion in debt relief for another 804,000 borrowers.
The Supreme Court justices ruled in a 6-3 decision that the Education Secretary had no authority to wipe 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 relief plan. Biden is pictured returning from Europe on Thursday night
Under Biden’s plan, those making less than $125,000 a year would have gotten $10,000 relief while Pell Grant recipients would have gotten $20,000 wiped.
The justices in the majority ruled that Biden should have gotten Congress’s approval first.
It sparked Biden to start plotting a new way to wipe the debts of millions of Americans and keep a promise he made during his presidential campaign.
‘By fixing past administrative failures, we are ensuring everyone gets the forgiveness they deserve, just as we have done for public servants, students who their colleges cheated, and borrowers with permanent disabilities, including veterans,’ Cardona added.
The Supreme Court justices ruled in a 6-3 decision that the Education Secretary had no authority to wipe the debts of 20 million borrowers
‘This Administration will not stop fighting to level the playing field in higher education’.
‘These fixes are part of the Department’s commitment to address historical failures in the administration of the Federal student loan program in which qualifying payments made under IDR plans that should have moved borrowers closer to forgiveness were not accounted for,” the Department of Education guidance said.
‘Borrowers are eligible for forgiveness if they have accumulated the equivalent of either 20 or 25 years of qualifying months.’
