Biden forgives $7.4B more in student loan debt

The Biden administration is announcing it is cancelling student loan debt for another 206,000 borrowers even as seven more states this week filed a lawsuit to stop the forgiveness plans.

The lawsuit alleges President Joe Biden is overstepping his authority, setting up another legal showdown over student debt forgiveness.

With Friday’s announcement, the White House says 4.3 million Americans can now claim some amount of federal student debt relief to the tune of $153 billion.

“We are past the point where one in ten people who have student loans have had their loans discharged,” said Education Secretary Miguel Cardona.

Eighteen Republican-led states are now suing to stop those efforts.

“The president is simply shifting the burden to those individuals who paid off their student loans or worked their way through school or chose to take a career that didn’t require a 4-year education,” said Rep. Bryan Steil (R-Wis.).

Education Secretary Miguel Cardona defends the administration’s plan as critics say the administration’s plans amount to a bailout for people who took out federal loans they couldn’t repay.

“Are you telling me these are the people getting bailouts? These are people that are public servants, we’re fixing a broken system, and we’re proud of it,” said Cardona.

The administration’s strategy lets borrowers pay nothing back until they reach a certain income level.

It also eliminates interest growth, lowers payments more than past plans, and cancels unpaid debt in as little as ten years.

“We want to help as many people as quickly as possible with as much debt relief,” Cardona said.

Critics also accuse the White House of using debt forgiveness to score political points with younger voters, a demographic more likely facing high college costs right now.

“Student loan cancellation is not going to do anything to solve the systemic issue of massive student loan debt and rising college prices,” said Adam Kissel of the Heritage Foundation.

The Supreme Court struck down the administration’s first attempt at student loan forgiveness, but Secretary Cardona believes their current approach is sound.

“We are making significant progress, and we laid the foundation, the foundation for this to continue to happen based on the rules that we’re putting in place,” Cardona said.

It’s not clear how much of a threat those lawsuits pose to the White House’s forgiveness efforts or how far the suits will make it in the legal system.

Source: Ktla