US President Joe Biden has cancelled $US7.4 billion in student loan debt as he tries to shore up support with young voters who are disproportionately affected by soaring education costs, but who may be drifting away over his policy on Israel and the war in the Gaza Strip.
President Joe Biden arrives at Dane County Regional Airport for an event on student loan debt in Madison, Wisconsin.Biden said this week that he would make another attempt at large-scale debt forgiveness for about 30 million people, despite Republican opposition and legal challenges. But in the meantime, he has been chipping away at student debt by fixing and streamlining existing programs that have been plagued by bureaucratic and other problems for years.
More than 200,000 of those who qualified had borrowed relatively small amounts originally – $US12,000 or less – and have been making payments through the administration’s income-driven repayment plan, known as SAVE.Others who will see relief include teachers, librarians, academics and public safety workers who have been making student loan payments for 10 years under the Public Service Loan Forgiveness program.
On Monday, Biden outlined a new attempt to wipe out student loan debt on a larger scale, beyond the scope of the programs he has been relying on so far.