The Biden administration is sending emails to over 150,000 student loan borrowers stating that $1.2 billion of their debt will be “forgiven” under a new SAVE plan.
However, critics say this merely transfers the debt to taxpayers.
“Congratulations—all or a portion of your federal student loans will be forgiven because you qualify for early loan forgiveness under my Administration’s SAVE Plan,” the email reads.
The plan allows cancellation of up to $12,000 for those who have been in repayment for 10 years.
“From day one of my Administration, I vowed to fix student loan programs so higher education can be a ticket to the middle class—not a barrier to opportunity,” the message adds. Biden says he hopes “this relief gives you a little more breathing room.”
Biden had previously crafted a $430 billion plan struck down by the Supreme Court for overstepping congressional authority.
“The borrowers receiving relief are the first to benefit from a SAVE plan policy that provides debt forgiveness to borrowers who have been in repayment after as little as 10 years and took out $12,000 or less in student loans,” the White House stated.
The U.S. Education Secretary acknowledged the new plan will likely face legal challenges but believes it can continue through the regulatory process.
The move comes as Biden trails Trump in polls and his approval hits historic lows, facing scrutiny over his mental acuity after the classified documents investigation described limitations in his memory.
“We’re using the regulatory process, which we believe includes public comment and negotiations with folks that don’t agree with us. So we do believe through this process it can continue, but we recognize that no matter what turn we make, we’re going to have folks challenging it. There are some that benefit from the system the way it was and I expect to hear from them. And, if I don’t hear from them, that means I’m not pushing hard enough,” Education Secretary Miguel Cardona said.
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