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The US is forgiving more federal student loans in a bid to tackle BԪַunsustainable debtBԪַ for borrowers

President Joe Biden outlined a new round of federal student loan forgiveness on Wednesday to address the BԪַunsustainable debtBԪַ that borrowers accumulate to complete their college education.

The announcement comes as borrowers brace for after a three-year pause that began during the COVID-19 pandemic and Biden tries to fulfill his campaign promises on debt relief as he runs for reelection.

The Democratic presidentBԪַs latest step will help 125,000 borrowers by erasing $9 billion in debt through existing programs. In total, 3.6 million borrowers will have had $127 billion in debt wiped out since Biden took office.

BԪַWeBԪַre not done yet,BԪַ Biden said in the Roosevelt Room at the White House.

He pledged to help alleviate the burden of student debt while running for president, and heBԪַs been under pressure to follow through even though was overturned by the conservative majority on .

Biden said the decision was responsible for BԪַsnatching from the hands of millions of Americans thousands of dollars of student debt relief that was about to change their lives.BԪַ

He has been relying on a patchwork of different programs to chip away at debt, such as announced last year, which lowers payments by tying them to borrowersBԪַ income.

BԪַMy administration is doing everything we can to deliver student debt relief to as many as we can, as fast as we can,BԪַ Biden said.

BԪַWhile a college degree is still the ticket toward a better life, that ticket has become excessively expensive. Americans who are saddled with unsustainable debt in exchange for a college degree has become the norm,BԪַ he said.

Some of BidenBԪַs efforts have involved bolstering existing programs, like .

BԪַFor years, millions of eligible borrowers were unable to access the student debt relief they qualified for, but thatBԪַs all changed thanks to President Biden and this administrationBԪַs relentless efforts to fix the broken student loan system,BԪַ Education Secretary Miguel Cardona said in a statement.

Additional debt forgiveness could help alleviate the impact of the long-scheduled this month, which will put a dent in tens of millions of family budgets. But it is unlikely to undermine the economyBԪַs strength in the long term even though analysts at BNP Paribas estimated it could take $100 billion out of consumersBԪַ pockets and slow overall growth during the final three months of this year.

Republicans have fought BidenBԪַs plans on student debt, but WednesdayBԪַs announcement comes as theyBԪַre on Capitol Hill. Hard-right Republicans forced a vote that ousted Rep. Kevin McCarthy, R-Calif., as House speaker, leaving the chamber in chaos.

In addition, the NAACP is pushing Biden to expand debt forgiveness by allowing Parent PLUS loans, which parents use for their childrenBԪַs college education, to be eligible for the SAVE Plan.

BԪַHistorically, education has been viewed as an entry point for marginalized communities to achieve upward mobility and begin building generational wealth,BԪַ NAACP President Derrick Johnson said in a statement that emphasized the disproportionate impact of debt on Black families. BԪַIt is unconscionable that, in their quest to provide their children with a brighter future, Black parents have fallen victim to a system that preys on their inherent disadvantage.BԪַ

Chris Megerian, The Associated Press

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FILE - President Joe Biden speaks about student loan debt relief at Delaware State University, Oct. 21, 2022, in Dover, Del. (AP Photo/Evan Vucci, File)




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