President Joe Biden outlined a new round of federal student loan forgiveness on Wednesday to address the 鈥渦nsustainable debt鈥� that borrowers accumulate to complete their college education.
The announcement comes as borrowers brace for after a three-year pause that began during the COVID-19 pandemic and Biden tries to fulfill his campaign promises on debt relief as he runs for reelection.
The Democratic president鈥檚 latest step will help 125,000 borrowers by erasing $9 billion in debt through existing programs. In total, 3.6 million borrowers will have had $127 billion in debt wiped out since Biden took office.
鈥淲e鈥檙e not done yet,鈥� Biden said in the Roosevelt Room at the White House.
He pledged to help alleviate the burden of student debt while running for president, and he鈥檚 been under pressure to follow through even though was overturned by the conservative majority on .
Biden said the decision was responsible for 鈥渟natching from the hands of millions of Americans thousands of dollars of student debt relief that was about to change their lives.鈥�
He has been relying on a patchwork of different programs to chip away at debt, such as announced last year, which lowers payments by tying them to borrowers鈥� income.
鈥淢y administration is doing everything we can to deliver student debt relief to as many as we can, as fast as we can,鈥� Biden said.
鈥淲hile a college degree is still the ticket toward a better life, that ticket has become excessively expensive. Americans who are saddled with unsustainable debt in exchange for a college degree has become the norm,鈥� he said.
Some of Biden鈥檚 efforts have involved bolstering existing programs, like .
鈥淔or years, millions of eligible borrowers were unable to access the student debt relief they qualified for, but that鈥檚 all changed thanks to President Biden and this administration鈥檚 relentless efforts to fix the broken student loan system,鈥� Education Secretary Miguel Cardona said in a statement.
Additional debt forgiveness could help alleviate the impact of the long-scheduled this month, which will put a dent in tens of millions of family budgets. But it is unlikely to undermine the economy鈥檚 strength in the long term even though analysts at BNP Paribas estimated it could take $100 billion out of consumers鈥� pockets and slow overall growth during the final three months of this year.
Republicans have fought Biden鈥檚 plans on student debt, but Wednesday鈥檚 announcement comes as they鈥檙e on Capitol Hill. Hard-right Republicans forced a vote that ousted Rep. Kevin McCarthy, R-Calif., as House speaker, leaving the chamber in chaos.
In addition, the NAACP is pushing Biden to expand debt forgiveness by allowing Parent PLUS loans, which parents use for their children鈥檚 college education, to be eligible for the SAVE Plan.
鈥淗istorically, education has been viewed as an entry point for marginalized communities to achieve upward mobility and begin building generational wealth,鈥� NAACP President Derrick Johnson said in a statement that emphasized the disproportionate impact of debt on Black families. 鈥淚t is unconscionable that, in their quest to provide their children with a brighter future, Black parents have fallen victim to a system that preys on their inherent disadvantage.鈥�
Chris Megerian, The Associated Press
