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Education

Biden Administration Approves $5 Billion Student Loan Debt Cancellation for 80,000 Borrowers”

The Biden administration announced its approval of an additional $4.8 billion in federal student loan debt cancellation, benefiting around 80,000 borrowers. This move is part of the ongoing efforts by the Education Department to provide relief to student loan borrowers following the Supreme Court’s decision to block President Joe Biden’s broader debt cancellation plan earlier this year.

READ: Unmasking My Unexpected Triggers: From Disney Magic to TV Violence, How the Israel-Gaza Conflict Altered My Emotions!”

Biden Administration

The department has, so far, approved a total of $132 billion in federal student loan debt cancellation, benefiting 3.6 million borrowers.

Education Secretary Miguel Cardona emphasized the historic nature of this relief, stating that no other administration has come close to such efforts. He highlighted the administration’s commitment to making higher education more affordable and described the recent discharges as a result of relentless efforts to address the shortcomings of the student loan system.

The latest round of relief is linked to adjustments made to the income-driven repayment plan and the Public Service Loan Forgiveness program, contributing $44 billion and $53.5 billion, respectively, to the total relief. The department has also canceled $11.7 billion for borrowers with a total and permanent disability and $22.5 billion for those who were victims of school-related fraud or sudden closures.

Education Secretary Cardona expressed the administration’s determination to continue providing debt relief, noting that the level of debt relief achieved so far is unparalleled. In October, the department initiated the formal regulatory process to potentially cancel the debt of five additional groups of borrowers.

Despite facing setbacks, including the Supreme Court’s decision blocking a significant debt cancellation plan, the Biden administration remains committed to improving the student loan system and using all available tools to address the challenges associated with student loan debt.

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