The Education Department announced the latest round of cancellation on Wednesday, saying it will erase $7.7 billion in federal student loans.

The Biden administration is canceling student loans for another 160,000 borrowers through a combination of existing programs.

The Education Department announced the latest round of cancellation on Wednesday, saying it will erase $7.7 billion in federal student loans. With the latest action, the administration said it has canceled $167 billion in student debt for nearly 5 million Americans through several programs.

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The latest relief will go to borrowers in three categories who hit certain milestones that make them eligible for cancellation. It will go to 54,000 borrowers who are enrolled in Biden’s new income-driven repayment plan, along with 39,000 enrolled in earlier income-driven plans, and about 67,000 who are eligible through the Public Service Loan Forgiveness program.

  • mydude@lemmy.world
    21·
    6 months ago

    https://bigthink.com/the-present/joe-biden-student-debt/

    In 1978 he co-wrote a bill that introduced the first limit on how students could use bankruptcy law to reduce their debt burden.

    In 1990 he helped author the Crime Control Act, which is famous for stepping up sentencing guidelines, included an entirely unrelated clause that further lengthened the time students had to wait before they could declare bankruptcy on their student loans.

    In 1998 they introduced an “undue hardship” clause to federal student loan bankruptcy proceedings; making it even more difficult to declare bankruptcy on student debt.

    To top all of this off, he supported adding the undue hardship clause to private student loans in 2005.

    • evatronic@lemm.eeEnglish
      9·
      6 months ago

      And now, he’s changed his stance in response to a changing society and pressure from voters.

      Isn’t that a good thing? Don’t we want politicians who are demonstrably responsive to voters?

    • hydrospanner@lemmy.world
      6·
      6 months ago

      Thank you for sharing all this.

      While I’m under no illusions that Biden is my friend, in the current political climate, I can’t shake the feeling that he’s my friendliest enemy.

      Can you shed any more light on that 1990 business?

      While I have no familiarity with it, the circumstances suggest that it’s possible that the added clause was added as a bit of trade-off to other members of Congress to get the crime bill over the finish line. Not that that makes it any less bitter a pill for borrowers, but if that’s how it happened, that’s much less “Biden hates borrowers” and much more the political game in DC.

      • mydude@lemmy.world
        1·
        6 months ago

        It’s not that Biden hates borrowers or students. The problem is, that even way back then, he owed too much favours, so he drafted legislation that “the big guys” (his quote) wanted.

        Results from Cca 1990 being easier to criminalize young people, and young people with records could not wipe debt/much harder to do. (if I understood it correctly).