Biden announces new student debt forgiveness plan
Since the Supreme Court ruled against the original version of the program, the president has been looking for other ways to fulfill his election promise.
(Cordon Press)
President Joe Biden announced Monday a new student loan debt forgiveness plan that, combined with previous programs, would impact 30 million Americans. The new measure would cancel up to $20,000 in interest on some borrower's debt without requiring enrollment, among other things.
The White House explained that the plan would specifically benefit Latinos and Blacks, two communities that the Democrat wants to seduce in the months leading up to this year's presidential elections. It also targets community college borrowers - most of whom belong to the two previous groups:
The announcement comes after the Supreme Court struck down the administration's original plan last June. According to the Committee for a Responsible Federal Budget (CRFB), the program Biden promised to implement during the 2020 election would have cost a minimum of $230 billion. The Penn Wharton-University of Pennsylvania Budget Model estimated it would cost $980 billion or about $2,100 per taxpayer.
Since then, the administration has explored different avenues to forgive student debt without going against the Supreme Court's ruling. Just over two weeks ago, Biden announced he was canceling $5.8 billion of student debt from 78,000 public workers.
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