Vote-buying scheme FAILED: Biden drops student debt forgiveness plans

We support our Publishers and Content Creators. You can view this story on their website by CLICKING HERE.

The Education Department rescinded two major pending proposals for student debt relief, affecting more than 25 million borrowers, citing “operational challenges” and the upcoming change in administration.
The PSLF program provides federal student loan forgiveness to eligible government and nonprofit employees after 10 years of service but has faced criticism for its complex application process.
Biden’s administration focused on simplifying relief programs, including nearly $180 billion in debt relief for 4.9 million borrowers, and has since provided relief to 55,000 additional borrowers.
Student advocacy groups expressed disappointment with the withdrawal of the debt relief proposals, viewing it as a setback for millions of Americans struggling with student debt.

President Joe Boden’s Department of Education announced on Dec. 20 the cancellation of plans to provide relief to more than 25 million borrowers. The notice rescinded two major pending proposals, one of which was already blocked by federal judge Matthew Schelp of the Eastern District of Missouri in a lawsuit brought by Republican attorneys general.

The department cited “operational challenges” as the reasons for the decision as Biden is set to conclude his term in January. Department officials maintained the legality of the plans but acknowledged that the incoming Trump administration is likely to view them differently.

“With the time remaining in this Administration, the Department is focused on several priorities including court-ordered settlements and helping borrowers manage the final elements of the return to repayment following the Fall 2024 end of the 12-month on-ramp period designed to assist borrowers who were unable to make their payments or who needed more time to access information to determine the right repayment plan for their circumstances,” the Education Department stated. (Related: Judge temporarily blocks implementation of White House’s latest student debt forgiveness scheme.)

Biden earlier announced that tens of thousands of public servants would see $4.28 billion in student debt canceled through the Public Service Loan Forgiveness (PSLF) program before he departed from the White House.

The PSLF program, established in 2007, offers federal student loan forgiveness to those who work for the government or eligible nonprofits for at least 10 years.

Vote-buying using taxpayer money

For years, the program has been criticized for its complicated application process, with many eligible borrowers struggling to access the relief they are entitled to. So when Biden took office four years ago, he focused on streamlining relief programs, including nearly $180 billion in debt relief for 4.9 million borrowers.

In 2021, Biden took steps to simplify the PSLF application process and now, the new round of relief for 55,000 borrowers is the latest outcome of reforms.

“From Day one of my administration, I promised to make sure that higher education is a ticket to the middle class, not a barrier to opportunity,” Biden said during the announcement of the debt cancellation. “Because of our actions, millions of people across the country now have the breathing room to start businesses, save for retirement and pursue life plans they had to put on hold because of the burden of student-loan debt.”

But critics view this as a strategy designed to gain more votes for Democrats in the recent election.

These withdrawn proposals had been billed as Biden’s “Plan B” following the 6-3 Supreme Court decision in 2023 that rejected his initial relief plan.

Meanwhile, student advocates have expressed disappointment over the administration’s decision as the withdrawal of these plans is a loss for millions of Americans carrying student debt.

Visit DebtCollapse.com for more stories about student loans.

Watch this clip from Fox Business detailing how Biden’s new Supreme Court-subverting student loan forgiveness plan could cost American taxpayers over $475 billion over the next 10 years.

This video is from the News Clips channel on Brighteon.com.