Biden cancels $9billion in student loan debt under new plan: ‘More than any president!'

President Joe Biden has confirmed that $9billion worth of student loan debt will be forgiven for thousands of Americans.

Some 125,000 borrowers will be awarded the relief which will cover those enrolled in different programs.

Among the affected programs will be income-driven repayment plans and Public Service Loan Forgiveness.

Over $5billion in support will go to 53,000 borrowers who have worked in public service for 10 years.

Another $2.8 billion in student debt relief is for 51,000 borrowers enrolled in income-driven repayment plans.

Finally, some $1.2 billion of the debt being cancelled will go to 22,000 former students with disabilities.

In a speech earlier today, Biden unveiled the extent of the support which will likely not be introduced until after the 2024 presidential election.

The President shared: “As a result of these changes, today I’m announcing my administration has approved an additional $9 billion in relief for 125,000 borrowers in just the past few weeks under that program.

“With the latest debt cancel- — cancellation, in total, my administration has canceled $127billion in student debts for nearly 3.6 million Americans. This kind of relief is life-changing for individuals and their families, but it’s good for our economy as a whole as well.

“By freeing millions of Americans from the crushing burden of student debt, it means they can go and get their lives in order. They can think about buying a house. They can start a business. They can be starting a family. This matters. It matters in their daily lives.”

The news of the coming student debt forgiveness will be welcomed by many borrowers who have started repayments as of October 1 following the years-long moratorium.

This was Covid-era support dating back from the Trump administration to help Americans financially during the pandemic years.

However, as of this month, repayments have restarted and interest for payments began accruing once again as of September 1.

Previously, the Biden Administration has attempted to introduce other support for student loan borrowers but this has been blocked by the Supreme Court.

Joe Biden’s intervention when it comes to the issue of student loan debt has been praised by various groups who believe it could help him win reelection next year.

Speaking to CNBC, higher education Mark Kantrowitz shared: “Biden has forgiven more student loan debt than any previous president.

“It distinguishes him from other candidates who are campaigning for the nation’s highest office.”