The White House is turning to other methods to erase student debt after the Supreme Court blocked its broader effort to forgive loans.
www.cbsnews.com
The Biden administration on Friday said it's canceling $7.4 billion in student debt for 277,000 borrowers, with the recipients scheduled to receive emails today to alert them to their loan discharges.
The latest effort extends the debt relief provider under President Joe Biden after the Supreme Court last year
blocked his administration's plan for broad-based student loan forgiveness. With the latest batch of loan cancellations, the White House said it has forgiven about $153 billion in debt for 4.3 million student borrowers.
Biden, who had made student loan relief a major campaign pledge, is tackling an issue that affects about 43 million Americans with a combined $1.7 trillion in student debt. It's a burden that some borrowers and their advocates say has harmed their ability to save for a home or achieve financial milestones, an issue that was echoed by Education Secretary Miguel Cardona in a conference call with reporters.
"I talked to a teacher in New York this week who took out a loan for $30,000," Cardona said Friday, "and after over a decade of paying and being a teacher the debt was $60,000, and she was saying that the interest was so high that the payments that she was making wasn't even touching her principal."
He added, "We are fixing a broken system. We're relentless and taking steps to transform a broken system into one that works people across the country."
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If we can forgive trillion$$ for businesses then we can forgive student debt when they meet criteria already in the law and that has, in the past, been denied by the likes of MOHELA because it enriches them.
www.forbes.com
