(ProsperNews.net) – President Biden has announced that his administration will write off roughly $7 billion of student debt. In a White House statement on May 22, the President said 160,000 people would benefit, each to the tune of around $35,000. Workers in public services, such as teachers or police officers, were approved for debt relief as part of Biden’s SAVE plan, which was available to borrowers who paid their debt for at least ten years and originally borrowed less than $12,000.
At the end of the statement, the President said he would “never stop” writing off student debt, regardless of Republican efforts to prevent him from doing so.
Student loan relief has been a contentious issue and source of conflict between the two parties since the commencement of the Biden administration. Last year, in a win for Republicans, the Supreme Court ruled against one of Biden’s policies, prompting him to commit to new strategies. The SAVE Plan was one such strategy and launched in August 2023. Over 75 million people registered between August and May 2024.
At a White House press conference, a reporter asked Press Secretary Karine Jean-Pierre why the government believes student borrowers are “due” loan forgiveness – a word used by Education Secretary Miguel Cardona. Jean-Pierre said President Biden wants to “fix” the system and prevent graduates from entering the jobs market burdened by enormous debt. Ms. Jean-Pierre argued that students need breathing space and that most Americans agree with debt cancellation programs.
However, polls on the issue show vastly different results. In March, a survey by the Protect Borrowers Action group found that 70% believed the government should step in and help graduates. Two years ago, however, a Cato Institute poll revealed that 76% opposed forgiveness if it caused college costs to rise, and 64% opposed it if it led to tax increases. Last year, another poll indicated that 46% opposed debt forgiveness, saying it is unfair to those who had paid back their loans.
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