Biden, who made his remarks during his visit to California, also included funding for his 2024 campaign, argued that cancellation of student loan not only helps those who directly benefit, but also in their communities.
“When the students’ loans get relief, they buy a house, they start business, they contribute, they engage in the community in ways that they were not able to do before and it really grows the economy,” Biden said.
According to a fact sheet by the White House, the latest round of student loan waiver includes about 153,000 borrower and a total of $ 1.2 billion.
Those receiving loan waiver are enrolled in savings on a valuable education or to save the repayment scheme, pay their loans for at least 10 years and have originally taken less than $ 12,000 in the loan.
The action of this week is $ 138 billion for about 3.9 million people for about 3.9 million people to cancel the total student loans by the Biden administration.
Income, repayment related to family size
The so -called Save Plan allows borrowers to determine their student loan repayment based on their income and family size, not the amount of the student loan organized by them.
According to the Fact Sheet of the White House, “Save plan ensures that if the borrowers are paying their monthly, their balance cannot increase due to unpaid interest.” “And, starting from July, graduate loan payment will be cut in half, capping at 5% of their discretionary income, a borrower’s loan payment.”
Education Secretary Miguel Cardona said on a call with reporters on Tuesday that around 7.5 million people enroll in the saved plan and there is no monthly payment of 4.3 million.
“Many people come from the lower and medium-or-medium background,” Cardona said. “Many took loans to participate in community colleges. Some were at high risk for people and high risk for default. So the works that we are announcing today matters. ,
Cardona said that the eligible people will receive an email from Biden for this phase of cancellation of students who tell them about the move.
New Fafsa Rollout criticized
Louisiana Republican Sen Bill Cassidi said in a written statement that the latest student loan forgiveness is misleading.
CADID said, “The Biden Department of Education has been unable to fulfill its basic responsibilities by the Congress compulsory and essential for families, such as implementing FAFSA,” Cassidi said, the application is filling up, filling the application to college students to use students’ assistance including grants, scholarships and loans.
Efforts to resume the Biden administration form have been killed by delay and errors.
Cassidi said, “Instead, he has spent a lot of time to give priority to his student loan schemes to transfer the loan of taxpayers to someone else’s taxpayers, who chose not to go to college or already to pay their loans.” “This is an eccentric attempt to inappropriate, manipulate and buy votes.”
Cassidi is a ranking member of the US Senate Health Education Labor and Pension Committee, which is often referred to as a support committee.
Supreme Court’s decision
Biden criticized the US Supreme Court for blocking his original student loan forgiveness scheme, speaking at the Julian Dixon Library at Culver City, California.
“At the beginning of my tenure, I announced a major plan to provide millions of working families with loan relief for my college student loan,” Biden said. “But in the Congress, my Maga Republican Mitra, elected officials and special interests stepped into us and filed a lawsuit with us. And the Supreme Court blocked it. But he did not stop me. ,
Biden said that Justice’s opinion in that case inspired him to “pursue alternative paths” for student loan relief, including an announcement made on Wednesday.
Some students canceling the loan, Biden said, “It is about giving people a chance.”
“We are doing all this … giving people a chance, a fight to make it, because no person who is not ready to work hard in America, should not be denied that opportunity.”