Biden administration drops two student loan forgiveness plans
The Biden administration is dropping its plans to pursue additional student loan debt cancellation in the final days of its term.
On Friday, the White House said the administration would be ending efforts for two more plans that would combat student loan debt for borrowers.
The Biden administration is dropping its plans to pursue additional student loan debt cancellation in the final days of its term.
On Friday, the White House said the administration would be ending efforts for two more plans that would combat student loan debt for borrowers, as noted by Inside Higher Ed.
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The two initiatives were said to have been aimed at more than 30 million borrowers, including those with large loan balance growth and those who experience various financial hardships, according to Forbes.
The first plan, Plan B, would have given $10,000 for most borrowers, while the second plan would provide assistance based on hardship “indicators,” such as low-income status.
”President Biden and his Administration recognize that the current student loan system and repayment programs don’t reach all borrowers, and for many Americans student loans continue to be a barrier for them participating in the economy, accessing economic mobility, or pursuing their dreams,” the administration said in an announcement of Plan B in April. “While Republican elected officials try every which way to block millions of their own constituents from receiving student debt cancellation, President Biden has vowed to use every tool available to cancel student debt for as many borrowers as possible, as quickly as possible.”
On Friday, the White House also announced President Biden’s plan to cancel some debt for public service workers.
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”Today, my Administration is announcing student debt cancellation for another 55,000 public service workers, bringing the total number of individuals who have been approved for student debt relief under my Administration to nearly 5 million people through various actions,” President Biden said in a statement.
”The public servants approved for debt cancellation today include teachers, nurses, service members, law enforcement officials, and other public service workers who have dedicated their lives to giving back to their communities and who are finally earning the relief they are entitled to under the law,” the statement continues.