(Daily360.com) President Biden has announced his plan to erase $7.7 billion in student debt, which will benefit 160,000 Americans.
Biden’s administration said they have wiped out a total of $167 billion in student loan debt for five million Americans since he took office. A Bloomberg editorial called the debt cancellation decision by Biden’s administration misguided. They say the plan will only hurt taxpayers while providing aid to rich college graduates. Bloomberg also said the administration’s ongoing cancellation of student debt is surely going to result in higher college tuition for all Americans.
The Biden administration attempted to first offer up to $20,000 in student debt relief, which was overturned by the Supreme Court. Plan B for student debt relief is now in action and will help borrowers who are underwater on their loans, meaning they owe more than they originally borrowed. The program will also assist people who have been paying on their student loans for more than 20 years.
Republican Senator Bill Cassidy denounced the plan as working around the Supreme Court’s decision and forcing taxpayers to foot the bill. The cost of the relief package will be $147 billion over the course of 10 years. This is just the first step of the larger debt relief plan that will include borrowers facing financial hardship.
A March poll found that student debt is an important election issue and more than 70% of respondents think the government should do something about the rising debt from college education. Half of survey respondents said some or all of the debt should be forgiven, including nearly half of Gen Z and Millennial Republicans.
Those who disagree with the issue have called Biden’s plan unfair or illegal. Some say that it is a “slap in the face” to borrowers who worked hard, made sacrifices, and were able to pay off their debt without government assistance. Supporters of the initiative say students shouldn’t have a lifetime of debt for wanting to pursue higher education.
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