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U.S. President Joe Biden Cancels $39Billion Students Loan Debtors.

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U.S. President Joe Biden’s administration has automatically cancelled $39 billion in student debt for more than 800,000 borrowers.

In a statement on Friday, U.S. Secretary of Education Miguel Cardona said the federal loans will be discharged in the coming weeks, Fox News reports.

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Cardona said: “For far too long, borrowers fell through the cracks of a broken system that failed to accurately track their progress towards forgiveness.

“Today, the Biden-Harris Administration is taking another historic step to right these wrongs and announcing $39 billion in debt relief for another 804,000 borrowers.

“By fixing past administrative failures, we are ensuring everyone gets the forgiveness they deserve, just as we have done for public servants, students who were cheated by their colleges, and borrowers with permanent disabilities, including veterans.”

“This Administration will not stop fighting to level the playing field in higher education,” Cardrona added.

The Department of Education said the “forthcoming discharges are a result of fixes implemented by the Biden-Harris Administration to ensure all borrowers have an accurate count of the monthly payments that qualify toward forgiveness under income-driven repayment (IDR) plans.

“These fixes are part of the Department’s commitment to addressing historical failures in the administration of the Federal student loan program in which qualifying payments made under IDR plans that should have moved borrowers closer to forgiveness were not accounted for,” it continued.

“Borrowers are eligible for forgiveness if they have accumulated the equivalent of either 20 or 25 years of qualifying months.”

“The Department will continue to identify and notify borrowers who reach the applicable forgiveness thresholds (240 or 300 qualifying monthly payments, depending on their repayment plan and type of loan) every two months until next year when all borrowers who are not yet eligible for forgiveness will have their payment counts updated,” it also said.

The announcement comes two weeks after the Supreme Court ruled that the Biden administration cannot proceed with its student loan debt handout program.

In a 6-3 decision, the court held that federal law does not allow the secretary of education to cancel more than $430 billion in student loan debt.

“The Secretary’s plan cancelled roughly $430 billion of federal student loan balances, completely erasing the debts of 20 million borrowers and lowering the median amount owed by the other 23 million from $29,400 to $13,600,” Chief Justice John Roberts wrote for the majority.

“I will stop at nothing to find other ways to deliver relief to hard-working middle-class families,” Biden said after making that decision.

Biden’s student loan initiative, which had been on hold pending litigation, involved the federal government providing up to $10,000 in debt relief — and up to $20,000 for Pell Grant recipients — for people who make less than $125,000 a year.

The program was expected to cost the government more than $400 billion.


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