Political and Legislative

The Biden Administration Is Forgiving $9 Billion in Student Debt for 125,000 Borrowers

The Biden administration said it is forgiving $9 billion in student debt for 125,000 borrowers, a move that comes as student loan repayments are starting up again this month after a hiatus of more than three years.

The debt cancellation is the latest push from the White House to erase some student loans in the wake of the Supreme Court’s June ruling. The 6-3 decision by the court’s conservative majority invalidated the administration’s plan for broad-based student loan forgiveness, which would have helped more than 40 million borrowers erase up to $20,000 each in debt.

With that debt forgiveness plan struck down, the Biden administration has focused on other methods for relieving student debt, including creating a new income-driven debt repayment (IDR) plan as well as outright forgiveness for some qualified borrowers. Meanwhile, with millions of student borrowers resuming payments this month, there are reports of problems with loan servicers, ranging from long wait times for callers to customer service reps who can’t answer questions.

Read the source article at CBS News

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