Update: This article has been edited to more accurately reflect the details of the situation. In summary, the loans targeted were previously only partially cancelled in the Trump administration for cases involving being defrauded by for-profit schools. In addition, this move was not done in secret by the Biden administration. We apologize for the lack of that context in the original version of this story.
President Biden is making big moves early in his administration.
He’s got a lot of work to do after making so many promises to his voter-base, and student loans seem to be one of the first in focus.
The Biden administration is cancelling $1 billion of student loans…
In a major announcement, the U.S. Department of Education will enact student loan cancellation for 72,000 student loan borrowers who previously had some student loans cancelled, but now will get full student loan cancellation.
The Biden administration says the previous formula to cancel student loans in cases of fraud or school closure that was used in the Trump administration — which often created partial student loan forgiveness — was unfair to student loan borrowers.
Joe Biden will be “canceling” the debt of some 72,000 student loans, amounting in $1 billion. This isn’t the full debt cancelling that Warren has been pushing for but its one step towards that goal in my opinion.
Now don’t get me wrong, if a loan was involved in fraud, or the school closed down, I think something should be done. Previously there was a partial cancelling of those loans and now Biden has taken it the rest of the way.
Student loans are a very delicate situation. There’s no doubt that increasing guaranteed student loans in the past decade has lead to massively inflated college prices without much increase in value from those degrees. We run the risk of saddling the next generation with a lifetime of debt that takes decades to pay-off, but there must also be accountability for people’s choices in life.
The cancellation of these specific loans is likely a good idea, but I am hesitant to jump on board with the cancellation craze these days and make it free for everyone. Surely there is a better path forward that allows for businesses to operate, students to get education, AND for people to still be held accountable for their decisions in life.
What do you think about Biden’s latest move here for these 72,000 loans involved in fraud or school closure?
- Joe Biden canceled $1 billion in student loan debt involved in fraud/closures
- The amount covers about 72,000 loans made to college students.