Biden's $9 billion 'favor' to students

In a written statement from the White House, it was noted that Biden approved the cancellation of $9 billion in student loans for 125,000 Americans as part of his student loan forgiveness policy.

With this move, the Biden administration has now forgiven a total of $127 billion in loan debt for approximately 3.6 million Americans to date.

In the U.S., where university education is expensive, many people apply for student loans to be able to attend college. Repaying these loans after graduation creates a significant financial burden for students.

SUPREME COURT HAD OVERTURNED BIDEN'S FORGIVENESS PLAN

U.S. President Biden announced on August 24, 2022, that they were extending student loan repayment deferrals for the final time until December 31 and that they would provide up to $20,000 in debt relief for individuals earning less than $125,000 annually.

However, Biden's student loan forgiveness program hit a roadblock on November 11, 2022, when it was blocked by a Texas Federal District Court.

Texas Federal District Judge Mark Pittman ruled that the forgiveness program, which offered up to $20,000 per person, was an "unconstitutional exercise of Congress's legislative power."

The Biden administration argued that it had the authority to do so under the Higher Education Relief Opportunities for Students (HEROES) Act, which was approved by Congress in 2003, but the case was taken to the Supreme Court by Republican-led states.

In June, the Supreme Court ruled 6-3 that the $430 billion student debt cancellation or reduction plan Biden introduced last year was unconstitutional, effectively overturning the decision.

Reacting to the ruling, Biden stated that the forgiveness plan could have been life-saving for millions of Americans affected by the Covid-19 pandemic and that he believed the court's decision was "wrong."

News Source: AA