Photo by Gayatri Malhotra

I am excited to announce that President Joe Biden will be addressing the public this Wednesday afternoon, discussing his administration's progress in tackling the issue of student debt. In addition to the initial relief measures already in place, the White House has announced an extra $9 billion in funding to provide aid for about 125,000 Americans struggling with student debt. This latest relief effort brings the total amount of debt cancellation approved by the Biden administration to $127 billion, aimed at helping nearly 3.6 million Americans in total. The White House has released a statement explaining the details of this effort.

The White House stated that today's announcement builds upon the efforts of the Biden-Harris Administration to make college more affordable and ensure that student loans do not hinder opportunities for students and families.

Biden plans to give a further address on the administration's efforts at 1 p.m. ET. This announcement comes soon after federal student loan repayments resumed after a hiatus of over three years. The resumption of repayments was a result of the Supreme Court's rejection of Biden's debt relief plan, which aimed to cancel up to $20,000 in student debt for approximately 43 million eligible borrowers.

The White House has approved an additional $9 billion for debt relief, with $5.2 billion going towards 53,000 individuals who are beneficiaries of the public service loan forgiveness program. Another nearly $2.8 billion is going towards approximately 51,000 borrowers on income-based repayment plans, who had been making payments for 20 years or more but never received the debt relief they were entitled to.

President Biden believes that college education should not be a burden on families and has taken steps to reduce student debt. As part of these efforts, an additional $1.2 billion in debt relief has been approved for approximately 22,000 borrowers with permanent disabilities. Although the Supreme Court invalidated Biden's original plan to eliminate over $400 billion in student debt, he has implemented alternate measures to address this national issue. The White House statement emphasized the administration's commitment to making college education more affordable and accessible to all, especially those facing financial challenges.

Back in June, President Biden revealed a new repayment option for borrowers. The plan allowed borrowers to enroll in a temporary 12-month program that removes the threat of default or damage to their credit. Moreover, the new plan reduces the percentage of a borrower's discretionary income paid towards their student debt. It has decreased from a previous cap of 10% to 5% for undergraduate loans. Additionally, the Department of Education will not report missed payments to credit agencies during this period, allowing borrowers to make up their payments without financial harm. Biden has promised to provide student debt relief to as many borrowers as possible through the 1965 Higher Education Act.