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 July 16, 2023

Biden admin revives separate $39 billion student loan forgiveness program

In the wake of the bombshell U.S. Supreme Court decision that tossed President Joe Biden's convenient, pre-election plan to forgive some $430 billion in student loan debt relief, the White House has figured out a way to save some face. 

According to The Daily Wire, the Biden administration announced last week that it's moving forward with another student loan forgiveness program that will ultimately forgive "$39 billion in student debt for about 804,000 borrowers."

The outlet noted:

The debt relief is the result of changes to the student loan system’s income-driven repayment programs. The programs were built to forgive student debt after borrowers have been making payments for at least 20 or 25 years, depending on their loan. However, few borrowers have actually gotten their loans forgiven under that system.

The essential criticism of such programs is the fact that any federal student loan relief of any type ultimately falls on U.S. taxpayers, and many argue that the millions of people who scrimped and sacrificed to pay off their student loans shouldn't, in any way, be responsible for those who didn't.

Biden's U.S. Department of Education, in a press release, commented on the revival of the federal program.

“These fixes are part of the Department’s commitment to address historical failures in the administration of the Federal student loan program," it said.

"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 U.S. Secretary of Education Miguel Cardona.

Cardona was quoted in the press release as saying, "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. By fixing past administrative failures, we are ensuring everyone gets the forgiveness they deserve, just as we have done for public servants, students who were cheated by their colleges, and borrowers with permanent disabilities, including veterans. This Administration will not stop fighting to level the playing field in higher education."

Under Secretary James Kvaal blamed the Trump administration, without specifically naming it, for not following through on the program.

"At the start of this Administration, millions of borrowers had earned loan forgiveness but never received it. That’s unacceptable," Kvaal said.

He added, "Today we are holding up the bargain we offered borrowers who have completed decades of repayment."

Not surprisingly, it was reported that the Biden administration has been "generous" in who qualifies for the student loan debt relief, and extended the offer of the program to those who may not have previously been eligible.

Newsmax reported that the new program could also face serious legal challenges in the coming months. Only time will tell.

Written By:
Ryan Ledendecker

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