Joe Biden will announce a sweeping student loan forgiveness plan on Monday during his visit to Madison, Wisconsin, the Wall Street Journal reported.
This is Biden’s latest vote-buying gimmick after the US Supreme Court and a federal appeals court blocked his other student loan relief programs.
The details of Biden’s latest student loan bailout plan are unclear, but the Wall Street Journal reported it could reduce loan balances for millions of borrowers.
CNBC reported:
The Biden administration will soon roll out a sweeping new student loan forgiveness proposal that could impact millions of Americans.
Despite its smaller scope than President Joe Biden’s first education debt relief plan that the Supreme Court ultimately blocked, this new aid package could still forgive the debt for as many as 10 million Americans, according to one rough estimate by higher education expert Mark Kantrowitz.
Biden is planning to provide details of his new debt forgiveness plan during a speech Monday in Madison, Wisconsin, The Wall Street Journal reported on Friday.
The president likely wants to start forgiving debt for many student borrowers ahead of the election in November.
Biden has used a series of workarounds to circumvent the Supreme Court’s decision to strike down his student loan bailout program.
Last year the Supreme Court ruled 6-3 against Joe Biden’s student loan relief program so the Department of Education rolled out a workaround forbearance program to cancel $39 billion in student loans by counting non-payments as payments for a period of time.
Only it isn’t your typical forbearance program. Borrowers won’t have to pay back ‘missed’ payments or make up the difference of ‘reduced’ payments. No interest will accrue on any of the missed payments.
In January Biden unilaterally canceled another $5 billion in student loan debt for 74,000 borrowers in his latest vote-buying gimmick.
“The latest round of student debt cancelation brings the total amount canceled under Biden to $136.6 billion for more than 3.7 million Americans, according to the Department of Education. It comes after the U.S. Supreme Court blocked Biden’s initial student loan handout last year, which would have cost more than $400 billion.” Fox Business reported.
Joe Biden also announced he would cancel student loans for borrowers who took out less than $12,000 and have been in repayment for 10 years.
Biden recently bragged about forcing hardworking middle-class Americans to pay for other people’s student loans.
Biden falsely claimed his debt cancellation is free during a campaign in Vegas earlier this year.
The Fifth Circuit Court of Appeals on Thursday blocked Biden’s plan to cancel loans for borrowers who claim they were victims of ‘misleading information’ by colleges.
A three-judge panel – one Reagan appointee and two Trump appointees – said Biden’s program was ‘almost certainly unlawful.’
