Biden Advances Further Student Loan Forgiveness as Repayments Restart Following Pandemic Hiatus

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President Joe Biden is set to unveil a new round of federal student loan cancellations on Wednesday, a White House insider has confirmed. This comes as borrowers prepare for the resumption of payments following a hiatus that lasted for three years due to the COVID-19 pandemic.

This most recent initiative will benefit approximately 125,000 loan holders by eliminating $9 billion in financial obligations via existing debt-relief mechanisms. Cumulatively, since Biden assumed the presidency, debt elimination initiatives have relieved 3.6 million borrowers of $127 billion in financial obligations.

The White House source chose to remain anonymous prior to the scheduled public disclosure of the plan, which is slated for 1 p.m. Eastern Time at the White House.

During his presidential campaign, Biden committed to alleviating the financial weight of student loans and has faced mounting pressure to deliver on this pledge, especially after his initial proposal was nullified by the conservative majority in the U.S. Supreme Court.

To circumvent this, Biden has utilized a combination of various programs aimed at reducing debt. These include Public Service Loan Forgiveness and the SAVE Plan, a program designed to reduce monthly payments by aligning them with borrowers’ income levels.

“Owing to President Biden and the persistent efforts of this administration to remedy the flawed student loan infrastructure, countless eligible borrowers who previously couldn’t access the debt relief for which they were qualified can now do so,” stated Education Secretary Miguel Cardona.

While Republicans have consistently opposed Biden’s student loan initiatives, Wednesday’s announcement arrives at a time when the GOP is embroiled in internal disputes on Capitol Hill. Extreme right-wing Republicans instigated a vote that resulted in the removal of Rep. Kevin McCarthy from his position as Speaker of the House, plunging the legislative body into a state of disarray.

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More about student loan forgiveness

• Biden to Announce New Student Loan Forgiveness
• Details of the Student Loan Relief Programs
• Biden’s Education Policy and Student Debt
• Republican Opposition to Student Loan Initiatives
• Capitol Hill Disputes and Leadership Changes