President Joe Biden bragged about the steps he’s taken to eliminate student debt in defiance of a Supreme Court decision that put a halt to one of his major debt-relief proposals.
Speaking in Las Vegas, the President highlighted his determination to continue reducing student debt, referencing an ongoing approach that circumvents a Supreme Court ruling from the summer of 2023. This ruling stopped his initial plan to cancel approximately $430 billion in student loan debt across an estimated 43 million Americans—a significant element of his presidential campaign pledges.
Facing judicial resistance, President Biden pointed out his administration’s adaptability in finding alternative methods to provide relief under the constraints set by the Supreme Court’s 6-3 decision. The administration’s focus has turned to modifying and expanding existing programs for federal student loan borrowers, a tactful yet controversial move.
For example, a rectification in one program now permits public servants to qualify for debt forgiveness—a change the President proudly announced during his Nevada speech, teasing the imminent notification to beneficiaries marked distinctly with his name.
Moreover, as of late January, the U.S. Department of Education has absolved an additional $5 billion in federal student loan debt for about 73,600 borrowers. This cancellation constitutes part of a grand total of $136 billion in forgiven debt for approximately 3.7 million individuals under the current administration.
President Biden is unwavering in his efforts, claiming an ambitious $25 billion per year is slated for future cancellation. He asserts that this debt forgiveness positively impacts economic growth and, contrary to criticism, does not impose a burden on taxpayers.
However, these statements have sparked controversy and a myriad of responses, especially across online platforms. Critics contend that the financial responsibility will ultimately be borne by Americans, through channels such as inflation and increased taxes, including those who either paid off their education loans or never accumulated them.
The Republican National Committee (RNC) has directly challenged the claim that the forgiveness program is cost-free, arguing that the debt would be indirectly transferred to citizens who might not even hold college degrees.