Friday, May 27, 2022

Biden Administration Cancels $15 Billion in Student Loan Debt

Joe Biden in Tulsa

*The Biden administration has allegedly canceled $15 billion in student loan debt, according to a press release from the Department of Education. 

According to the report, more than 675,000 borrowers have benefited from Biden’s loan forgiveness. Per the Education Data Initiative, over 43 million Americans still owe $1.75 trillion, or roughly $40,000 per student loan recipient.

Late last year, Biden extended the pause on student loan debt payments until at least May 2022. 

“Given these considerations, today my Administration is extending the pause on federal student loan repayments for an additional 90 days—through May 1, 2022—as we manage the ongoing pandemic and further strengthen our economic recovery,” he wrote, as reported by Complex. “Meanwhile, the Department of Education will continue working with borrowers to ensure they have the support they need to transition smoothly back into repayment and advance economic stability for their own households and for our nation.”

READ MORE: Joe Heard Ya! Biden to Extend Pause in Student Loan Payments

Prior to the extension announcement, the president backed out of his promise to wipe out student loan debt. White House press secretary Jen Psaki confirmed in early December that student loan repayment will resume on Feb. 1 as scheduled. 

“We’re still assessing the impact of the [COVID-19] Omicron variant,” Psaki said. “But a smooth transition back into repayment is a high priority for the administration.  The Department of Education is already communicating with borrowers to help them to prepare for return to repayment on February 1st and has secured contract extensions with loan servicers.”

Biden initially campaigned on his support of clearing “$10,000 of undergraduate or graduate student debt relief for every year of national or community service, up to five years and $50,000,” CNBC writes. The president reportedly wants Congress to craft the legislation to get it done. The White House intends to “engage directly with federal student loan borrowers to ensure they have the resources they need and are in the appropriate repayment plan.”

Ny MaGee
Ny MaGee is an entertainment reporter with over 15 years of experience working in the film industry in areas including production and post-production, marketing, distribution, and acquisitions. She has worked for legendary film producer Roger Corman, Quentin Tarantino's production team at Miramax, the late Larry Flynt, MTV/ VH1, Hallmark Channel, Paramount, Jim Henson Co., Parade Magazine, and various LA-based companies representing above-the-line talent.

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