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USA: The US government plans to partially cancel student loans again

USA: The US government plans to partially cancel student loans again

US President Joe Biden is continuing to deliver on his campaign promise of massive student loan forgiveness. An additional 277,000 Americans are now expected to benefit. The latest proposed debt relief is part of a plan to relieve 30 million Americans of excessive student debt, the government said.

According to this, 4.3 million Americans have had at least one of their student loans forgiven. That brings the total debt relief under the Biden administration to $153 billion. “We have approved aid for 1 in 10 of the 43 million Americans who have student loans,” said Education Secretary Miguel A. Cardona said.

He wrote that the planned move is part of a strategy by the US government to support certain borrowers The New York Times. According to the U.S. government, more than 200,000 of those who qualify have borrowed relatively small amounts — $12,000 or less. These are the so-called save plan borrowers. It is a government program designed to provide an affordable student loan repayment plan by lowering interest rates.

The Supreme Court struck down large-scale debt relief

Another 65,000 borrowers enrolled in other income-based repayment plans are also part of the debt reduction efforts, Cardona said. The proposed area mandates will affect teachers, librarians, academics and public safety employees.

Last year, the U.S. Supreme Court declared a $400 billion student loan forgiveness program illegal. The ruling said the US government had overstepped its authority with the plan, requiring the approval of the US Congress.

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So the government is now planning small-scale measures. Plans announced by Biden, according to the Department of Education America Part of the Higher Education Act – ie the Higher Education Act.