WASHINGTON: U.S. President Joe Biden revealed on Thursday the cancellation of $6 billion in student loans for 78,000 borrowers, marking a cumulative student debt relief of nearly $150 billion by his administration.
Biden, a Democrat, had previously committed to exploring alternative approaches for addressing debt relief following the Supreme Court’s obstruction of his broader initiative to nullify $430 billion in student loan debt in June of the preceding year.
Among the recent beneficiaries are individuals engaged in public service roles, such as educators, medical professionals, and firefighters, who are eligible for debt forgiveness through the Public Service Loan Forgiveness Program instituted in 2007.
Addressing this group, Biden remarked, “These dedicated public service workers have devoted their careers to their communities, yet due to past administrative shortcomings, were denied the relief owed to them by law.”
According to data from the Federal Student Aid website as of June 2023, approximately 43.4 million student loan recipients in the U.S. carried outstanding loans totaling $1.63 trillion, a threefold increase since the 2008 financial downturn.
The burden of high interest rates and substantial loan payments has hindered younger Americans from purchasing homes or making other investments, prompting years of advocacy from Democrats for federal government intervention in forgiveness initiatives. Republicans, however, have generally opposed such measures.
With eyes on re-election in November, Biden recognizes the significance of securing the support of young voters. “I remain committed to utilizing all available means to extend student debt relief to more Americans,” he affirmed, “and to construct an economy that prioritizes growth from the middle and bottom tiers.”
A White House representative disclosed that the recent action by Biden elevates the total sum of debt cancellation during his tenure to $144 billion, benefiting nearly 4 million Americans.
(Islamabad51_Newsdesk)
