Months after the United States Supreme Court struck down President Biden’s sweeping student loan forgiveness program as illegal, the administration is pressing forward with another round of partial loan forgiveness.
“Today, my Administration is canceling student debt for 277,000 more people, bringing the total number of Americans who have been approved for debt relief so far under my Administration to 4.3 million borrowers through various actions,” the White House announced on Friday.
This move carries a hefty price tag of $7.4 billion for taxpayers, who are already grappling with soaring inflation.
“I will never stop working to cancel student debt – no matter how many times Republican elected officials try to stop us,” Biden declared.
Friday’s announcement coincides with a period where consumers across the United States are witnessing a surge in food prices.
Since Biden took office in Jan. 2021, the price of eggs has skyrocketed by 104%, from $1.47 per dozen to an average of $3.00. Other staples have also witnessed significant increases, with bread up by 29%, chicken per pound up by 25%, flour per pound up by 24%, and a pound of butter up by 23% since 2021.
In his statement on Friday, President Biden reiterated his commitment to pursuing student loan forgiveness, effectively alleviating financial burdens for millions of borrowers just months ahead of his 2024 reelection campaign against presumptive Republican nominee, former President Trump.
“And, earlier this week, I laid out my Administration’s new plans that would cancel student debt for more than 30 million Americans when combined with everything we’ve done so far,” Biden stated, as per the White House.
He emphasized, “From day one of my Administration, I promised to fight to ensure higher education is a ticket to the middle class, not a barrier to opportunity.”
However, Biden’s proposal to forgive up to $20,000 for all borrowers, regardless of income, has drawn criticism from Republicans.
“The Senate should block Biden’s socialist student debt relief program,” asserted Sen. Marsha Blackburn, R-Tenn. “Hardworking Tennesseans should not be paying for wealthy coastal elites to get PhDs in gender studies. The Supreme Court already struck down Biden’s previous student loan scam as unconstitutional, but once again, he is attempting to defy the rule of law.”
House GOP Conference Chairwoman Elise Stefanik, R-N.Y., echoed similar sentiments, stating, “Joe Biden is forcing the American people to foot the bill for his illegal student loan bailout in a desperate attempt to save his failing campaign.”
According to the White House, the 277,000 borrowers set to benefit from the latest round of loan forgiveness are enrolled in the Biden administration’s new SAVE Plan or were approved for relief under the Income-Driven Repayment Plans and Public Service Loan Forgiveness programs.
“Today’s announcement comes on top of the significant progress we’ve made for students and borrowers over the past three years,” the statement continued, citing efforts to increase the maximum Pell Grant, fix Public Service Loan Forgiveness, and hold colleges accountable for exploiting students and families.
The Supreme Court ruled on June 30, 2023, that the Biden administration lacked constitutional authority for such student loan forgiveness initiatives.
The total cost of Biden’s student loan forgiveness initiatives now exceeds $153 billion.