Student Loan Update as Payees Could Get $2,500 Tax Deduction
NewsweekJan 01
White House Cancels $5B in Student Debt for 74K Borrowers
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The Facts
US Pres. Joe Biden's administration on Friday announced that 73.6K student loan borrowers will have their debt forgiven as part of a $4.9B plan that brings the number of borrowers receiving loan forgiveness under the administration to 3.7M.
The Department of Education released a statement saying that the discharges come from fixes to income-driven repayment (IDR) forgiveness and Public Service Loan Forgiveness. The administration has forgiven a total of $136.6B in student loans.
The Spin
Republican narrative
Joe Biden’s administration continues to defy last year’s Supreme Court ruling, pushing radical wealth redistribution plans and stealing from hardworking taxpayers. The court decided that the executive cannot cancel $400B of debt without Congressional approval, but Biden’s rogue administration has decided to implement this unconstitutional plan in smaller waves.
Democratic narrative
Pres. Biden is keeping his promise to hard-working Americans who have devoted their lives to public service and have consistently sacrificed to pay their debts for more than 10 years. While far-right Supreme Court justices may have struck down Biden’s comprehensive plan, the administration has every right to relieve public workers and other borrowers from the immense burden of student debt.