Biden admin continues to ignore Supreme Court ruling — wipes out another $1.2 billion in student loan debt

The Biden administration announced Wednesday morning that it has approved the cancellation of another $1.2 billion in federal student loan debt, according to a White House press release.

Nearly 153,000 borrowers who are currently enrolled in the administration’s Saving on a Valuable Education repayment plan will have their debt canceled, according to the recent statement.

Borrowers enrolled in SAVE who took out $12,000 or less and have been in repayment for at least 10 years are eligible for the debt forgiveness plan. However, those who took out more than $12,000 could also see their loans wiped out.

“For every additional $1,000 a borrower initially borrowed, they will receive relief after an additional year of payments,” the White House explained. “For example, a borrower enrolled in SAVE who took out $14,000 or less in federal loans to earn an associate’s degree in biotechnology would receive full debt relief starting this week if they have been in repayment for 12 years.”

Eligible borrowers will begin seeing their loans canceled as early as this week.

“Originally planned for July, the Biden-Harris Administration implemented this provision of SAVE and is providing relief to borrowers nearly six months ahead of schedule,” the White House added.

According to the announcement, the forgiveness plan aims to “help community college and other borrowers with smaller loans and put many on track to being free of student debt faster than ever before.”

“Under the Biden-Harris Administration’s SAVE plan, 85 percent of future community college borrowers will be debt free within 10 years,” the White House noted.

To date, the Biden administration has approved roughly $138 billion in federal student debt cancellations that will be passed along to American taxpayers. The White House touted that Biden “has cancelled more student debt than any President in history,” despite “Republicans in Congress and their allies” attempting to “block” the administration “every step of the way.”

The administration claims its debt forgiveness plan will “fix the student loan system and make sure higher education is a pathway to the middle class.”

In an effort to circumvent the Supreme Court’s June decision to block Biden’s plan to implement sweeping federal student loan cancellations, the administration has been rolling out multiple smaller but similar forgiveness plans.

In January, the Biden administration announced it would eliminate more than $5 billion in federal student loan debt for 74,000 borrowers.

An Intelligent.com survey released last month found that millions of student loan borrowers are refusing to repay their debt, hoping it will pressure the federal government to roll out unilateral cancellations.

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