Administration Approves $4.8 Billion in Student Debt Cancellation

While a bill to repeal the president’s SAVE plan passes in the House of Representatives.

 President Biden’s administration approved the cancellation of $4.8 billion in federal student loan debt on Tuesday. For this round of cancellations, administration officials focused on the debts of “borrowers who have been in repayment for at least 20 years – but didn’t accurately get credit for student loan payments,” President Joe Biden stated.

On Thursday, the House of Representatives passed legislation that would repeal the Education Department’s Saving on a Valuable Education (SAVE) plan, which was issued in July after the Supreme Court ruled against the administration’s previous federal student loan forgiveness plan.

Sponsors of the bill, Representatives Virginia Foxx of North Carolina and Lisa McClain of Michigan, stated that the president’s plan “will leave mountains of debt at the feet of taxpayers while absolving millions of borrowers of their loans. What’s worse is that future borrowers will take on loans expecting forgiveness, which in turn encourages schools to raise tuition rates.”

As the Lord Leads, Pray with Us…

  • For the president and his economic advisors as the administration pursues additional debt relief for federal student loan borrowers.
  • For members of Congress as they assess the national debt and the cost of student loan forgiveness.
  • For COO Richard Cordray as he oversees the Office of Federal Student Aid.

Sources: Reuters, White House, Department of Education, Daily Caller

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