Biden To Forgive All Student Debt

Gage Skidmore from Surprise, AZ, United States of America, CC BY-SA 2.0 , via Wikimedia Commons

Can this really be happening?

Thousands of current and former students have seen a part of their college debts cleared with the possibility of further reductions still present on the horizon. According to the Federal Student Aid estimates, approximately 40,000 individuals will be eligible for “immediate debt cancellation.” These cancellations will fall under the Public Service Loan Forgiveness Program’s new guidelines.

“Student loans were never meant to be a life sentence, but it’s certainly felt that way for borrowers locked out of debt relief they’re eligible for,” Miguel Cardona, U.S. Secretary of Education, said in the release. “Today, the Department of Education will begin to remedy years of administrative failures that effectively denied the promise of loan forgiveness to certain borrowers enrolled in IDR plans.”

He further added, “These actions once again demonstrate the Biden-Harris administration’s commitment to delivering meaningful debt relief and ensuring federal student loan programs are administered fairly and effectively.”

President Biden has so far extended the pause on student loan payments twice in an attempt to ease the financial burden on American households during the COVID-19 pandemic. The freeze is currently set to expire on April 30, but many outlets believe another extension will soon be approved.

This new measure aims to combat the general tactic of small payments that do not cover any of the principal amounts.
Rep. Ro Khanna has previously expressed concerns about how student loans will prevent Americans from starting their lives, buying homes, or starting families.

“It leads to young people not wanting to have families,” the California Democrat said in a Fox News interview. “It means young people aren’t able to buy homes.”

Khanna has also said that he understands those opposing student loan forgiveness on the premise that they or their parents paid off their student loans and thus, everyone should cover their debts. He said that he has “so much admiration for parents who made those sacrifices for their kids.”