WASHINGTON (AP) — President Joe Biden unveiled a new initiative on Wednesday aimed at addressing the immense burden of federal student loan debt amassed by college graduates, labeling it as “unsustainable debt.”
Watch the event in the player above.
This announcement comes as borrowers prepare for the resumption of loan payments after a three-year hiatus triggered by the COVID-19 pandemic. Biden, who is seeking reelection, is striving to fulfill his campaign promises regarding debt relief.
WATCH: Payments for student loans are starting again. Here’s what you need to know
This latest measure by the Democratic president will benefit 125,000 borrowers, eradicating a total of $9 billion in student loan debt through existing programs. Since assuming office, Biden has successfully eliminated $127 billion in debt for 3.6 million borrowers.
“We’re not done yet,” expressed Biden during the briefing in the Roosevelt Room at the White House.
While campaigning for the presidency, Biden pledged to alleviate the burden of student loan debt. Although his initial plan was struck down by the conservative majority on the Supreme Court, he has faced mounting pressure to follow through on this commitment.
Referring to the Supreme Court’s decision, Biden remarked, “This ruling snatched from the hands of millions of Americans thousands of dollars of student debt relief that was about to change their lives.”
Thus far, the administration has employed a variety of programs, such as the SAVE Plan unveiled last year, which links payment amounts to borrowers’ income, to tackle student debt.
WATCH: Biden speaks after Supreme Court strikes down student loan relief plan
Biden asserted, “My administration is doing everything we can to deliver student debt relief to as many borrowers as possible, as swiftly as possible.”
He continued, “Although a college degree is still a valuable asset, its exorbitant cost has become the new norm. Americans burdened with unsustainable debt in exchange for a college education is an unfortunate reality we must address.”
Some of Biden’s initiatives have involved bolstering existing programs, including public service loan forgiveness.
“For years, numerous eligible borrowers were unable to access the student debt relief they were entitled to. However, thanks to President Biden and his relentless efforts to rectify the broken student loan system, that has changed,” declared Education Secretary Miguel Cardona in a statement.
Further debt forgiveness could help offset the impact of loan payments resuming this month, a development that will strain the budgets of countless families. However, it is unlikely to have a long-term adverse effect on the economy, despite BNP Paribas analysts estimating a potential $100 billion decrease in consumer spending and a slowdown in overall economic growth in the final quarter of this year.
Republicans have staunchly opposed Biden’s student debt plans, but the timing of Wednesday’s announcement coincides with their internal divisions on Capitol Hill. In fact, hard-right Republicans recently forced a vote that removed Rep. Kevin McCarthy, R-Calif., from his position as House speaker, plunging the chamber into disarray.
In addition, the NAACP is urging Biden to expand debt forgiveness by including Parent PLUS loans, which parents utilize to finance their children’s college education, as eligible for the SAVE Plan.
“Throughout history, education has served as a gateway for marginalized communities to achieve upward mobility and begin accumulating generational wealth,” emphasized NAACP President Derrick Johnson in a statement, drawing attention to the disproportionate impact of student debt on Black families. “It is unconscionable that Black parents, in their pursuit of a brighter future for their children, have fallen victim to a system that preys on their inherent disadvantage.”
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