Since its inauguration in January 2021, Joe Biden has canceled about 3 billion dollars in student loans. Biden has made progress with his campaign vow to abolish student debts by increases and has canceled debt of $2.8 billion with additional plans ahead.
Shortly after he took office, Biden began his rollout of cancels, with 72,000 loans totaling $1 milliard this March canceled.
There was already a provision in effect before Biden took action on student loans that eliminated the student debt of those whose institutions closed or committed fraud.
The upshot of this strategy was largely a partial cancelation of students' debt, and in March the action by Biden tried to eliminate their debts totally.
This form of cancer was first proposed as a clause in the Higher Education Act under the Obama administration in 2015.
According to the United States Department of Education's Federal Student Help Division, it was referred to as borrower advocacy for payments, and the provisions were meant "to allow borrowers to seek forgiveness of credit if they were misled by college or university or other misconduct that violated certain national laws."
Discussion over taxpayers' and student debts
In order to move the financial burden for the repayment of loans away from taxpayers, the provisions have been modified by former U.S. Education Secretary Betsy DeVos under the Trump administration, since the forgiveness was supported federally and so derived from taxpayers.
In discussing the cancellation of the federal loan, the topic of whether taxpayers' money should be used to repay student loans is essential.
DeVos made it more complicated for the students who wanted the loan forgiveness through this route, applying where they had to show more meticulously how harmful the institution is.
It was DeVos' stance that financial accountability was unjust to taxpayers, whereas others maintained that the American higher education system was predatory and that students at a young age were caught in enormous sums of debt, and that living without a degree was becoming unlikely.
While student lending is an important problem in America, it is also a source of anxiety among Greek students studying abroad in England. Recently, English universities barred EU students from receiving student loans.
The road Biden has taken since March to eliminate student debt
Biden began his journey towards lending forgiveness to individuals partially affected by the revised repayment for a borrower's defense or those receiving school graduates who shut down or committed fraud.
Only a few weeks later, he terminated debts of $1.3 trillion for 41,000 permanently-inflicted lenders of $2.3 billion.
On Thursday, again under a borrower defense provision, he canceled $500 million additional student loans with a current total of $2.8 billion of the cancelations.
Biden has clearly demonstrated his commitment to canceling the loan, but the specific pace of the cancelation is still unknown.
Loan forgiveness cannot be fully universal, which means that all loans borrowed from persons by students are not accepted.
