Biden Has Now Cancelled $3 Billion Of Student Loans
Since become president in January, Biden has cancelled more than $2.8 billion of student loans, including another big announcement for student loan cancellation today:
American have reacted differently to student loan cancellation. Student loan cancellation has been called both a stimulus and a massive wealth transfer.
Supporters of student loan cancellation have been divided on Biden’s actions to cancel student loans. For example, some supporters have cheered Biden’s agenda to enact student loan cancellation. In only five months, Biden has moved quickly to cancel student loans for more than 1 million student loan borrowers. This is in addition to student loan relief such as pausing student loan payments, setting interest rates to 0%, and pausing all collections of student loans in default. From March 2020 to September 30, 2021, the U.S. Department of Education estimates that student loan borrowers will get more than $90 billion of student loan cancellation as a result of student loan relief from the Cares Act stimulus.
Other supporters say Biden hasn’t enacted wide-scale student loan cancellation. These supporters are asking whether student loan cancellation has been cancelled. While they recognize Biden cancelled student loans in specific circumstances, they want student loan forgiveness for all or nearly all $1.7 trillion of student loan debt. Some supporters would be happy with $10,000 of student loan cancellation, while other supporters demand $50,000 of student loan cancellation. While $3 billion is a large headline number, some supporters note that it’s approximately 0.1% of the $1.7 trillion of student loan debt outstanding.
