Biden-Harris Administration Doubles Down On Student Debt Cancellation Programs

Joe Biden is doing all he can to help himself in this year’s Presidential election and those who borrowed money for college.

President Biden announced Monday that his highly anticipated Plan B for student loan debt cancellation nearly a year following the U.S. Supreme Court denied his original program will move along. Biden’s announcement relayed that it would provide “significant relief” for Black and Latino borrowers, according to The Grio.

“We know there are big racial disparities in the student loan program, and students of color are more likely to borrow larger amounts and are more likely to struggle to repay [their loans],” James Kvaal, U.S. Under Secretary of Education, said to TheGrio. Additionally, he said, the program would have a “positive impact on the racial wealth gap."

“Most Black borrowers owe more 10 years out of school than they originally borrowed because of interest outstripping payments,” Kvaal explained. “We need to bring relief to everyone who’s struggling with their student loans.”

What exactly is Biden’s Plan B? Well, the announcement includes five methods to "fix" the federal student loan program, which include providing debt cancellation “for borrowers who owe more today than they did when they entered repayment, who have owed for 20 years or more and who are experiencing financial hardship.”

According to the Biden-Harris administration, the plan is designed to “provide meaningful relief to Black borrowers who rely more heavily on student debt than white families and who take longer to pay off loans.” Along with the federal government’s existing programs that have already canceled $140 billion in student loan debt for four million borrowers, the administration anticipates that north of 30 million Americans will benefit from some form of relief.

Those who owe more than their original balance when they began repayment due to interest will be eligible for federal student loan forgiveness, and Kvaal said that is about 25 million borrowers. This will be especially meaningful for Black borrowers who more than likely will owe an increased balance, according to the Brookings Institution.

For the debt relief program for borrowers who have hardships, Kvaal stated the administration would consider health care costs or other “unusual family expenses.”

“We have a number of programs to cut payments or offer loan forgiveness for people who are struggling to afford their loans for any number of reasons,” he said. “But there are still a lot of people who slip in between these programs and are struggling on their loans. The hardship is intended to give us the flexibility to help additional people who really need it.”

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