Joe Biden Outlines New Plan For Student Debt Forgiveness

President Joe Biden recently announced a new plan to forgive student debt after his original proposal was struck down by the Supreme Court...

Photo byGage Skidmore via Wikimedia Commons

President Joe Biden has announced a new plan to forgive the student debt of millions of Americans, according to a statement published by the White House.

"I know there are millions of Americans — millions of Americans in this country who feel disappointed and discouraged, or even a little bit angry, about the Court’s decision on student debt," said President Biden.  "And I must admit I do too."

"My plan would not only have been life-changing for millions of Americans, it would have been good for the American economy," Biden continued. "Freeing millions of Americans from the crushing burden of student debt, more homes would have been bought, more businesses would have been started, more couples would have had the confidence to start a family.  Millions of people would have felt they could get on with their lives."

"I believe the Court’s decision to strike down my student debt relief program was a mistake, was wrong. I’m not going to stop fighting to deliver borrowers what they need, particularly those at the bottom end of the economic scale.  So, we need to find a new way.  And we’re moving as fast as we can."

President Biden continued to say that he is working on a new plan to provide student debt relief to as many borrowers as possible as quickly as possible. "We will ground this new approach in a different law than my original plan, the so-called Higher Education Act.  That — that will allow Secretary Cardona, who is with me today, to compromise, waive, or release loans under certain circumstances. This new path is legally sound.  It’s going to take longer, but, in my view, it’s the best path that remains to providing for as many borrowers as possible with debt relief."

According to data published by Forbes, the average person with student debt owes $28,950. It's also worth mentioning that people in the United States have approximately $1.75 trillion in total student loan debt (including federal and private loans).

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