Biden Comes Up With New Student Loan Relief Plan

After an initial attempt was blocked by the United States Supreme Court last year, President Joe Biden has announced another student loan relief program. The White House on Monday unveiled the new plan which seeks to wipe out the student loan debt of over 30 million people.

According to a release by the White House, the latest program will provide “significant relief” to “Black and Latino borrowers, borrowers who attended community college, and borrowers who are financially vulnerable because they took out debt but never had the chance to complete their degree.”

“Not only are Black students more likely to take on student loans than their white peers, but they also end up holding nearly twice as much debt as their white peers four years after graduation. And Latino borrowers are also more likely to default on their student loans compared to white borrowers,” the administration wrote further.

With the plan, the administration says it hopes to provide relief to borrowers who are eligible for loan forgiveness but have not applied yet, borrowers who owe more than they did at the start of repayment due to accrued interest, borrowers who enrolled in low-financial-value programs and borrowers who are having a hard time paying back their loans due to economic hardship in their daily lives.

Biden championed the plan from an event in Wisconsin, saying, “Today, too many Americans, especially young people, are saddled with unsustainable debts in exchange for a college degree. The ability for working and middle class folks to repay their student loans has become so burdensome that a lot can’t repay it for even decades after being in school.”

“Even when they work hard and pay their student loans, their debt increases, not diminishes. Too many people feel the strain and stress wondering if they can get married, have their first child, start a family because even if they get by, they still have this crushing, crushing debt, and it’s not just a drag on them,” he added.

Taking a swipe at Republicans for their opposition to the original student loan bailout plan that got blocked by the Supreme Court, the president emphasized the administration’s commitment to finding “alternative paths to reduce student debt payment that are not challenging.”

According to the White House, the plan can start to take effect from early fall. The plan, however, faces potential legal challenge from Republicans who could stall it from going into effect.

Biden’s new plan comes as he faces low polling numbers ahead of the November election. A new Gallup poll shows him losing ground on important metrics such as strong and decisive leadership, effectively managing the government and displaying good judgment in a crisis.