Monday, April 15, 2024

Biden Announces Another $1.2 Billion in Illegal Student Loan Debt Forgiveness

'Under the Biden--Harris Administration’s SAVE plan, 85 percent of future community college borrowers will be debt free within 10 years...'

(Headline USA) The Biden administration announced this week it will transfer another $1.2 billion in student-loan debt from more than 150,000 borrowers to taxpayers at large, despite a Supreme Court ruling last year that made clear the executive branch lacks the authority to do so without congressional action.

President Joe Biden plans to sign an executive order, called the Savings on Valuable Education (SAVE) policy, that will redirect debt for borrowers who have been repaying their loans for at least 10 years and still hold $12,000 or less in debt.

“This shortened time to forgiveness will particularly help community college and other borrowers with smaller loans and put many on track to being free of student debt faster than ever before,” the White House said in a statement. “Under the Biden–Harris Administration’s SAVE plan, 85 percent of future community college borrowers will be debt free within 10 years.” 

Biden reportedly planned to unveil the executive order in July, but likely sped up the timeline in the hopes that it would boost his approval ratings among young voters as the 2024 election cycle heats up.

The Biden administration has now unilaterally canceled more than $138 billion in federal student loans without Congress’s approval. The bailouts come despite the Supreme Court blocking Biden’s initial debt cancelation plan, which would have cost more than $400 billion.

The White House, however, continues to brag about flouting the Supreme Court’s decision.

“From Day One of his Administration, President Biden vowed to fix the student loan system and make sure higher education is a pathway to the middle class—not a barrier to opportunity,” the White House said. 

Congressional Republicans have tried to push back on the Biden administration’s illegal efforts, with the House voting in December to block implementation of another one of Biden’s student-loan debt forgiveness efforts.

The measure from the House would block the Education Department from enacting a rule that would allow borrowers who have earnings of less than $15 per hour to pay $0 on their student loans.

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