Wednesday, 25 December 2024

Biden Administration WITHDRAWS Student Loan Forgiveness Plans

100 Percent Fed Up
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In one of his final acts, Joe Biden has just withdrawn two big “student loan forgiveness” plans.

Make no mistake: this is a good thing. Probably one of the best decisions made by the Biden admin yet, but canceling student debt was also one of the top, if not the number one, campaign promise he made in 2020.

Yet, he couldn’t deliver on his promise in four years…

Sorry folks, no refunds!

Take a look:

This news comes right on the heels of Biden pardoning criminals left and right, including commuting the sentences of just about every criminal on federal death row…

This has even many liberals wondering: why did I vote for Biden, again?

Look at these reactions:

NBC News reported:

The Biden administration has withdrawn two major plans to deliver student loan forgiveness.

The proposed regulations would have allowed the secretary of the U.S. Department of Education to cancel student loans for several groups of borrowers, including those who had been in repayment for decades and others experiencing financial hardship.

The combined policies could have reduced or eliminated the education debts of millions of Americans.

The Education Department posted notices in the Federal Register on Friday that it was withdrawing the plans, weeks before President-elect Donald Trump enters the White House.

The department wrote that it was terminating the rulemaking proceeding due to “operational challenges in implementing the proposals.” It said it would “commit its limited operational resources” in these final weeks of the administration “to helping at-risk borrowers return to repayment successfully.”

The Education Department did not immediately respond to a request for comment.

“The Biden administration knew that the proposals for broad student loan forgiveness would have been thwarted by the Trump administration,” said higher education expert Mark Kantrowitz.

Trump is a vocal critic of student loan forgiveness, and on the campaign trail he called President Joe Biden’s efforts “vile” and “not even legal.”

Biden’s latest plans became known as a kind of “Plan B” after the Supreme Court in June 2023 struck down his first major effort to clear people’s student loans.

Consumer advocates expressed disappointment and concern about the reversal on debt relief.

“President Biden’s proposals would have freed millions from the crushing weight of the student debt crisis and unlocked economic mobility for millions more workers and families,” Persis Yu, deputy executive director and managing counsel of the Student Borrower Protection Center, said in a statement.

Forbes added:

The Biden administration walked away from two mass student loan forgiveness plans on Friday, marking an anticlimactic end to the efforts to enact broad student debt relief. Officials withdrew proposed regulations that would have allowed the initiatives to be implemented.

The two loan forgiveness plans would have created pathways to student debt relief for broad swaths of student loan borrowers, including those who have experienced runaway balance growth due to interest accrual, and people who are dealing with significant personal or financial hardships. Had the programs been enacted, they could have benefited more than 30 million borrowers.

But given ongoing legal battles over Biden’s student loan forgiveness initiatives — most of which have not been going well for the administration — as well as the transition to the Trump administration in January, officials may have concluded that these plans were unlikely to go into effect, anyway. And by scrapping the programs before the Trump administration takes office next month, Biden officials may be trying to insulate borrowers from potentially adverse actions, and preserve relief for the future.

This is a Guest Post from our friends over at WLTReport.

View the original article here.


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