Biden cancelled $39 billion in student loan debt.
The cancellation of $3,900 million in student loans was announced by US President Joe Biden. According to the country’s Income Driven Repayment-IDR (Income Based Loan Repayment) system, the president waived the loan, the country’s education department reported on July 14. More than 8 lakh 4,000 students have had their loans forgiven as a result of this loan waiver program.
However, IDR means that the student’s or his family’s education debt must be repaid each month based on their current monthly income.
Borrowers who have taken out loans during the last 20 or 25 years and have partially repaid their loans may be eligible for forgiveness, according to the Department of Education. IDR programs often lower the amount of loan repayments for low-income American borrowers and cancel their outstanding debt after a specific period of time.
These borrowers will be added to the list of persons who have gotten loan forgiveness at various points over the past two years, Joe Biden stated in a statement. As a result, 3 million persons who owed 11 billion dollars in total had their debts erased.
US President previously declared
The US President previously declared that, despite the Supreme Court’s rejection of his administration’s attempts to cancel hundreds of billions of dollars’ worth of debt, he would take fresh steps to forgive US student loans.
Biden’s projected $430 billion in debt forgiveness has already started to be rescheduled by the US Department of Education. The full initiative will, however, take several months to implement.
IDR plan public
In 2022, the US government made improvements to the IDR plan public. Up to $20,000 in student loan forgiveness was part of President Joe Biden’s plan. But last month, the Supreme Court issued a stay of the judgment. Following the court’s decision, Biden pledged to develop an alternative method of loan forgiveness. The choice made today has blocked a path, he said at the time. Now we’ll take a different route.