- Biden makes big moves before leaving the office
- Their debt cancellation will relieve "nearly 5 million people" of debt during Biden's presidency
Biden makes big moves before leaving the office
US President Joe Biden announced on Friday that he will cancel the student loans of 55,000 more Americans, wiping out $4.28 billion in loans in the final month of his presidency. In the last month of his last term in office.
The individuals whose debts will be cancelled en masse are "teachers, nurses, soldiers, law enforcement officers, and other public servants who have devoted their lives to serving their communities", he said in a statement released by the White House on Friday.
"From the first day of my administration, I promised to make sure that higher education is a ticket to the middle class, not a barrier to opportunity," said the outgoing President.
US Secretary of Education Miguel Cardona announced that the decision on Friday brings the total amount of state takeovers during Biden's four years in office to "nearly $180 billion". It is estimated that the government has taken a total of USD 180 billion in life-changing student debt relief, benefiting almost five million borrowers."
Their debt cancellation will relieve "nearly 5 million people" of debt during Biden's presidency
The Democratic President launched a major debt eradication program in 2022 to eliminate hundreds of billions of dollars in student debt. Under this program, the vast majority of eligible debtors could expect to get rid of USD 10 000 of debt, although in some cases, debt of USD 20 000 could be canceled.
However, the Supreme Court, where the conservatives have a majority, struck down the program in 2023, arguing that the President had exceeded the limits of his powers by canceling such a large amount of debt.
In the United States, college costs between USD 10 000 and USD 70 000 a year, and some graduates enter the labour market already burdened by a heavy debt load.
According to the Pew Research Center, one in four American adults under the age of 40 has an outstanding student loan, and the average cost of such loans, depending on the level of education, was between USD 20,000 and USD 25,000 in 2023.
Based on ELTA reports
