In a major move by the Biden administration, over 150,000 borrowers of federal student loans can expect to receive a personal email congratulating them on their newfound debt forgiveness. The plan, which will cost American taxpayers $1.2 billion, is the latest in a series of actions taken by President Biden to address the student loan crisis.
According to Politico, the administration has already canceled a whopping $138 billion in debt for nearly 4 million borrowers since Biden took office in 2021. This latest round of loan forgiveness is part of the president's Save Student Aid Forgiveness for Education (SAVE) Plan, which aims to make higher education more accessible and affordable for all Americans.
In the email, borrowers will receive a message from President Biden himself, reminding them that he is their champion in the fight against student loan debt. "Congratulations—all or a portion of your federal student loans will be forgiven because you qualify for early loan forgiveness under my Administration’s SAVE Plan," the email states. "From day one of my Administration, I vowed to fix student loan programs so higher education can be a ticket to the middle class—not a barrier to opportunity."
This latest move from the Biden administration is just one in a series of actions taken to provide relief to struggling borrowers. A senior administration official stated that the emails are an "important way to communicate with borrowers" and to raise awareness about the benefits being offered.
However, not everyone is in favor of the SAVE Plan and other loan forgiveness programs implemented by the Biden administration. Republicans have criticized the plan, pointing out that it only benefits those who chose to take out loans, while those who paid for their education out of pocket are left to foot the bill.
In fact, last September, Republicans attempted to stop the SAVE Plan by offering a Congressional Review Act resolution to overturn it. Senator Bill Cassidy of Louisiana stated, "Once again, Biden's newest student loan scheme only shifts the burden from those who chose to take out loans to those who decided not to go to college, paid their way, or already responsibly paid off their loans."
Senator John Thune of South Dakota echoed this sentiment, saying, "It's incredibly unfair to those who never incurred student debt because they didn't attend college in the first place or because they either worked their way through school or their family pinched pennies and planned for higher education."
Despite criticism, the Biden administration is pushing forward with its efforts to provide relief to borrowers. In addition to loan forgiveness, the administration has also secured the largest increase in Pell Grants in a decade and has fixed the Public Service Loan Forgiveness Program.
The goal is to make higher education a more attainable goal for all Americans, regardless of their financial background. By providing debt relief, increasing financial aid, and expanding loan forgiveness programs, the Biden administration hopes to make progress toward this goal.