Biden Administration to Forgive $39,000 Million in Student Loans | Society

The U.S. Department of Education announced this Friday that it will forgive $39,000 million (€34,750 million) in university loans in the coming weeks for some 804,000 students who owe loans directly to the government.

“For too long, borrowers have suffered from a broken system that can’t manage forgiveness,” Education Secretary Miguel Cardona said in a statement. “Today, the Biden-Harris administration is taking another historic step. By correcting past administration failures, we’re making sure everyone gets the forgiveness they deserve, just as we did for government officials, students defrauded by colleges, and borrowers with permanent disabilities, including veterans. The fight to level the playing field for higher education This administration won’t stop. Two and a half years into office, Biden is already the president with the most debt forgiveness in history.

The announcement comes two weeks after the Supreme Court struck back one of his administration’s star measures, forgiving 43 million students $10,000 or $20,000 (loans, a widespread federal program that includes loans to beneficiaries of Pell Grants). Made to complete their university studies, a routine, many are forced out by a system that prioritizes the pursuit of profit. About $400,000 million was canceled in the move.

To do so, the Biden administration relied on a provision of the post-9/11 legislation known as HEROES. The gesture is one of the key arguments in the 2024 presidential re-election campaign seeking youth votes. The Supreme Court ruled that lowering this level without going to Congress was unacceptable.

It’s the latest ruling in a judicial course that has certified the most conservative court’s turn to the right in eight decades, with all nine of its justices ending racially based affirmative action in university admissions. That same day, Biden appeared at the White House to criticize the decision and announced that he would pursue “new paths” to achieve his goal. “While trying to recover from a pandemic unprecedented in a century, my administration’s student loan relief program would have been a lifeline for millions of hard-working Americans,” he said.

This Friday’s announcement will affect education sector borrowers, depending on their income. These plans offer forgiveness after 20 or 25 years. Failures in the management of the companies that manage these loans have made these charges more severe, which the new measure plans to remedy.

Biden also announced that he would try to implement a different debt relief program under the Higher Education Act (1965), which gives the Secretary of Education “authority to acknowledge, waive, or release any right, title, claim, lien, or claim, however acquired, including any equity or right of redemption.”

Since 1980, the total cost of four-year degrees at public and private universities has tripled, adjusted for inflation. A step Analysis carried out by the Department of Education In a recent sample of college students, nearly a third of borrowers defaulted but never graduated. Many of them could not complete their degree because of high tuition fees.

The next date marked on the calendar for payment due dates is the beginning of October. Thus ends an interval imposed during epidemics. Until that moment arrives, like a student waiting for test scores to come out, hundreds of thousands of former students now await word in the coming weeks about whether or not they can benefit from the new amnesty.