Biden Announces More Student Loan Handouts
President Biden announced on Wednesday that his administration would be forgiving an additional $6.1 billion in student loan debt for 317,000 borrowers who attended the Art Institutes. This brings the total amount of student loan forgiveness under the Biden administration to $160 billion, impacting nearly 4.6 million borrowers.
According to the president, the Art Institutes have engaged in predatory practices, falsifying data and misleading students, leading them to take on large amounts of debt without the promise of a promising career. This move is part of Biden's ongoing efforts to fix the broken student loan system and make higher education more achievable for all Americans.
In his statement, President Biden acknowledged that this forgiveness is just one part of his administration's work to address student debt. He cited other measures such as increasing the maximum Pell Grant fixing Public Service Loan Forgiveness and Income-Driven Repayment programs.
Secretary of Education Miguel Cardona also weighed in on the issue, calling the Art Institutes out for taking advantage of hopeful students and providing them with little but lies in return. He asserted that this ends today thanks to the work of the Biden-Harris administration with the attorneys general offices of Iowa, Massachusetts, and Pennsylvania.
Federal Student Aid Chief Operating Officer Richard Cordray echoed these sentiments, emphasizing the administration's dedication to protecting borrowers from predatory institutions. He also expressed a commitment to working with federal and state partners in order to ensure that higher education is affordable for students and taxpayers.
The relief provided will be automatically applied to those who qualify, relieving them of the burden of their debt. This decision comes as students across the nation are protesting the ongoing conflict between Israel and Hamas in Gaza.
Critics of the move argue that it is not fair to taxpayers who will ultimately end up footing the bill for this debt forgiveness. They also question the effectiveness of continuously forgiving student loans, arguing that it does not address the root issues of high tuition costs and predatory educational institutions.
On the other hand, supporters of student loan forgiveness argue that it is a necessary step in addressing the crippling debt that many Americans face. They believe that education is a basic right and that the government has a responsibility to ensure that it is affordable for all.
The announcement also comes at a time when the debate over canceling student debt has reached a fever pitch. Proponents of widespread student loan forgiveness have been calling on President Biden to cancel up to $50,000 in student debt per borrower, while opponents argue that it would only benefit a small percentage of borrowers and would not address the underlying issues.
President Biden's continued efforts to alleviate the burden of student loan debt are sure to remain a hot topic of debate in the months and years to come. While some may see this as a step in the right direction, others are concerned about the long-term effects of continually forgiving student loans. Only time will tell the full impact of these decisions and whether or not they will truly make higher education more achievable for all Americans.