(UnitedVoice.com) – Student loan forgiveness has been a controversial subject over the past few years. In 2020, it was a cornerstone of then-candidate Joe Biden’s presidential platform. When he tried to enact a full-scale forgiveness program, however, legal challenges took it all the way to the Supreme Court in 2023, where it was struck down. That didn’t stop the Biden administration, though. Over the past several months, there have been multiple rounds of forgiveness exceeding $138 billion. Now, there’s another one on the way.
Who Qualifies This Time?
On Friday, April 12, President Joe Biden announced that there would be another round of forgiveness, this time totaling $7.4 billion. That brings the grand total so far to more than $140 billion. However, while many loans have been earmarked for forgiveness, not all of them have been fully processed, so some borrowers are still in limbo as to whether they owe on their loans or not.
This round of forgiveness will go to 270,000 people. Just under 201,000 will qualify under the new SAVE Plan, which equates to $3.6 billion, while the remainder of the funds will go to fixes under the income-driven repayment program, another $3.5 billion, and Public Service Loan Forgiveness Program, $300 million.
The announcement makes it clear that the administration will keep pushing for new avenues to forgive even more debt. Critics say it’s a last-ditch effort to win over voters.
How Does This Compare to the Original Plan?
Originally, as announced in August of 2022, the Biden Administration planned to issue a blanket forgiveness of $430 billion. That would eliminate either $10,000 or $20,000 for Americans who met the criteria. However, the Supreme Court struck down the strategy after it was challenged.
Some of the previous loan holders that have seen part or all of their balances forgiven include 1.3 million borrowers who were either in school when the institutions suddenly closed, were cheated by universities or colleges, or were expecting a court settlement. These cases added up to $22.5 billion. Then, there were 513,000 borrowers who are permanently or totally disabled, and a revamped application paved the way to $11.7 billion forgiven.
While the Biden Administration is continuing to look for ways to provide relief, 11 states are suing to prevent the burden from falling unjustly on taxpayers. Kansas Attorney General Kris Kobach (R) is leading his and 10 other states in legal action, claiming Biden is circumventing Congress and the Supreme Court ruling by taking matters into his own hands. He wants the courts to “strike down” what he considers “an illegal or unconstitutional executive act.”
Copyright 2024, UnitedVoice.com
