Biden cancels another $9B in student loan debt as payments restart

October 6, 2023

The Biden administration approved an additional $9 billion in student debt relief just days after payments restarted for millions of borrowers.

The move comes despite Biden's student loan debt forgiveness plan being struck down by the Supreme Court earlier this year.

Biden's comments

“This kind of relief is life-changing for individuals and their families, but it’s good for our economy as well. By freeing millions of Americans from the crushing burden of student debt, it means they can go and get their lives in order,” Biden said.

“They can think about buying a house, they can start a business, they can be starting a family. This matters, it matters to their daily lives,” he added.

The breakdown

"More than $5 billion of the aid will go to 53,000 borrowers who’ve worked in public service for a decade or more; $2.8 billion of the forgiveness is for 51,000 borrowers enrolled in income-driven repayment plans; and another $1.2 billion of the cancellation will go to 22,000 borrowers with disabilities," CNBC reported.

"The announcement is likely to help Biden as he runs for reelection, experts say," according to the report.

The court's decision

"In June, the U.S. Supreme Court struck down Biden's plan to cancel hundreds of billions of dollars in debt through the HEROES Act. That plan would have forgiven $10,000 per qualifying borrower and up to $20,000 for Pell Grant recipients," Just the News reported.

"In Biden v. Nebraska, the Supreme Court ruled the administration's plan to cancel $10,000 in loan debt for people making up to $125,000 or married couples making up to $250,000 exceeded the scope of the 2003 HEROES Act," it continued.

The move comes as Biden's approval numbers continue to remain low and former President Donald Trump's polling numbers have matched or sometimes surpassed him in a potential 2024 rematch.

The 125,000 people receiving student loan forgiveness will certainly be more likely to vote for Biden in the concerning response to a broader decision turned down in court.

The Biden administration may seek to cancel even more student debt through other methods as the election nears in a strategic move bound to cause more controversy.

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