This past week witnessed another move by our current administration, the Biden White House, towards discharging student loans. It was announced that $7.7 billion will be lifted off the shoulders of 160,000 borrowers; $7.7 billion that, however, is to be absorbed by taxpayers. This forgiveness is a product of the Saving on a Valuable Education (SAVE) plan, combined with an income-driven repayment plan and the Public Service Loan Forgiveness initiative. Collectively, these actions have nullified $167 billion of student debt, affecting five million Americans since the administration commenced.

President Biden commented on this, stressing his commitment to making higher education a vehicle for reaching the middle class rather than an impediment to expanding opportunities. 'From the first day, I vowed to tirelessly seek ways to dissolve student debt', said Biden, seemingly undeterred by the opposition from Republican-elected representatives. He didn’t specifically indicate that he anticipates backlash, though it is suggested that he's prepared to counter objections.

Through the new income-driven repayment plan, the administration plans to provide respite to 54,000 borrowers. The Public Service Loan Forgiveness is expected to come to the aid of another 67,000 borrowers, while existing income-driven repayment plans will absolve the loans of an additional 34,000 people. This is said to be the latest series of measures following last year’s Supreme Court ruling labeling previous attempts to cancel $430 billion in student loans as unconstitutional.

The White House, however, has been surmising alternative strategies since that ruling. Some might argue this seems like an effort to appeal to younger, progressively leaning voters by cancelling their debt, albeit with the consequence of redirecting that burden to the nation’s taxpayers.

Earlier this year, the president's SAVE Plan was met with opposition from states led by Republicans. They lodged a lawsuit against the administration, challenging the constitutionality of the plan, which was inaugurated in 2022 and has since discharged loans for over 150,000 Americans.

This past week witnessed another move by our current administration, the Biden White House, towards discharging student loans. It was announced that $7.7 billion will be lifted off the shoulders of 160,000 borrowers; $7.7 billion that, however, is to be absorbed by taxpayers. This forgiveness is a product of the Saving on a Valuable Education (SAVE) plan, combined with an income-driven repayment plan and the Public Service Loan Forgiveness initiative. Collectively, these actions have nullified $167 billion of student debt, affecting five million Americans since the administration commenced.
President Biden commented on this, stressing his commitment to making higher education a vehicle for reaching the middle class rather than an impediment to expanding opportunities. 'From the first day, I vowed to tirelessly seek ways to dissolve student debt', said Biden, seemingly undeterred by the opposition from Republican-elected representatives. He didn’t specifically indicate that he anticipates backlash, though it is suggested that he's prepared to counter objections.
Through the new income-driven repayment plan, the administration plans to provide respite to 54,000 borrowers. The Public Service Loan Forgiveness is expected to come to the aid of another 67,000 borrowers, while existing income-driven repayment plans will absolve the loans of an additional 34,000 people. This is said to be the latest series of measures following last year’s Supreme Court ruling labeling previous attempts to cancel $430 billion in student loans as unconstitutional.
The White House, however, has been surmising alternative strategies since that ruling. Some might argue this seems like an effort to appeal to younger, progressively leaning voters by cancelling their debt, albeit with the consequence of redirecting that burden to the nation’s taxpayers.
Earlier this year, the president's SAVE Plan was met with opposition from states led by Republicans. They lodged a lawsuit against the administration, challenging the constitutionality of the plan, which was inaugurated in 2022 and has since discharged loans for over 150,000 Americans.

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