Biden's $4.8 Billion Student Loan Forgiveness Plan Offers New Beginnings for Thousands

On Wednesday, the Biden administration said that it will erase an extra $4.8 billion of 80,300 students' student loan debt. The U.S. is the cause of the alleviation. The Public Service Loan Forgiveness program and its income-driven repayment programs have been fixed by the Department of Education.

A total of 46,000 borrowers who are engaged in income-driven repayment schemes will receive over $2 billion in help. After a predetermined amount of time, such plans are meant to result in debt forgiveness; however, experts believe that this has frequently not happened because loan servicers neglected to monitor customers' payments.

Furthermore, 34,400 borrowers who have served in the public sector for ten years or longer would have their loans cancelled for $2.6 billion, according to the U.S. stated the Department of Education. Due to inaccuracies in their payment totals and other problems, borrowers in the Public Service Loan Forgiveness program have also had difficulty receiving the debt cancellation they were promised.

Over 3.6 million Americans now had their school debt forgiven, totaling close to $132 billion, thanks to the Biden administration.

Biden's Student Loan Forgiveness Plans Spark Political Debate Ahead of Potential Reelection

According to higher education expert Mark Kantrowitz, President Joe Biden is expected to benefit from the steps as he seeks reelection.

Republican presidential candidates are against forgiving student loans. Chris Christie, the former governor of New Jersey, said that Biden lacked the right to waive student loan debt without first receiving congressional approval.

In 2022, Chris Christie expressed on ABC's "This Week" that he believes President Biden acknowledges the illegality and excessiveness of his actions. This statement came shortly after Biden's announcement of a comprehensive debt forgiveness plan, ultimately rejected by the Supreme Court in June. The proposed plan, with an estimated cost of around $400 billion, aimed to be one of the most expensive executive actions in history.

In June, former President Trump stated that the Supreme Court ruling on President Biden's inability to forgive substantial student loan debt was, "very unfair to the millions and millions of people who paid their debt through hard work and diligence."

According to Florida Governor Ron DeSantis, it is unfair to burden taxpayers with the cost of forgiving student loans.
"Why should someone with a degree in zombie studies need to be paid for by a truck driver?DeSantis stated during an early August rally in Iowa. "It is not logical."

According to a Politico/Morning Consult survey, the majority of voters-by a margin of two to one-support canceling at least some student loan debt. Fewer than one-third are against the policy.

Another attempt to develop a one-time student loan forgiveness scheme is being made by the Biden administration. This time, the administration is initiating a formal rulemaking process known as "negotiated rulemaking," which takes months and is likely to produce a proposed rule not until the following year. The administration is basing this approach on a different legislation than it did for the program that the Supreme Court overturned. After that, legal difficulties can arise.