More student loan borrowers will see their debt ‘canceled’ with taxpayers left picking up the tab

Jan 12, 2024 | Political News

On Friday, the Biden administration announced it would move forward with another round of federal student loan cancellations, according to a White House press release.

“From Day One of my Administration, I vowed to fix the student loan system and make sure higher education is a pathway to the middle class – not a barrier to opportunity. Already, my Administration has cancelled student debt for 3.6 million Americans through various actions – delivering lifechanging relief to students and families, and we created the most affordable student loan repayment plan ever: the SAVE plan,” the announcement stated.

The administration's commitment to “fix” the broken student loan system appears only to involve passing the costs onto taxpaying Americans, despite the Supreme Court's ruling in June that sweeping debt cancellations are unlawful.

Last year, Biden proposed unilaterally wiping out $10,000 of federal student loan debt for individuals making less than $125,000 yearly and married couples earning less than $250,000 yearly. Those who took out Pell Grants could see an additional $10,000 in loan cancellations.