The Biden administration has canceled another $1.2 billion in student debt, forgiving the loans of 150,000 borrowers. It will benefit students that enrolled in the Saving on a Valuable Education (SAVE) plan and those who borrowed less than $12,000 for their college education.
As Valuetainment previously reported, Biden canceled about $9 billion in debt for 125,000 borrowers in October. With this latest round of loan forgiveness, the total amount of college debt forgiven has risen to $138 billion since Biden took office, affecting 3.9 million students. Three million more students who have applied for SAVE could see their loans forgiven should they become eligible. The Biden administration has declined requests to offer a figure for the total amount of debt that could be forgiven.
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However, Biden has so far fallen short of his original promise to relieve $10,000 of debt for borrowers making less than $125,000 a year. His proposal to wipe out $20,000 per borrower–$400 billion total–was rejected by the Supreme Court.
“With today’s announcement, we are once again sending a clear message to borrowers who had low balances: If you’ve been paying for a decade, you’ve done your part, and you deserve relief,” Education Secretary Miguel Cardona said in a statement. Last week, Cardona told reporters that the Department of Education was seeking additional avenues to forgive more borrowers.
At a speech in Culver City, CA, Biden said the forgiveness could be “life-changing” for families and will doubtlessly “grow the economy” by allowing more Americans to buy homes. He also said it will help those who did not go to college, such as those who “work with their hands,” saying $200 million in grants for apprenticeship programs will be disbursed throughout the country.
Shane Devine is a writer covering politics, economics, and culture for Valuetainment. Follow Shane on X (Twitter).
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