Gonzalez Celebrates Biden Admin Cancelling $7.7 Billion in Student Loan Debt

Gonzalez Celebrates Biden Admin Cancelling $7.7 Billion in Student Loan Debt

Joshua Smith
Joshua Smith
May 24, 2024

Texas Representative Vicente Gonzalez (D) recently celebrated to the Biden administration’s recent cancellation of $7.7 billion in student debt.

“I applaud @POTUS for the cancellation of $7.7 billion in student debt relief for 160,000 Americans, but we must continue to do more. Student loans hold back our people from achieving their full potential and living their American Dream,” said Rep. Gonzalez.

Biden’s plan is not without nuance as he’s had to work around the Supreme Court’s blockage of his original plan.

Last year, in a 6-3 ruling, SCOTUS ruled that Biden’s use of the HEROES Act was not within his power. The lawsuit was brought to the court by six states (Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina) who stated that Biden was overstepping his power.

In April, Biden announced a new plan to address student debt. “My administration has approved debt cancellation for 4 million Americans through various actions,” said Biden. 

And today, I’m announcing new plans that will cancel student debt for millions more. In total, these plans would cancel some or all student debt for 30 million Americans when combined with everything we’ve done so far,” continued Biden.

The new, most recent batch of loan forgiveness will go toward 165,000 borrowers. The borrowers who qualify include people such as teachers and law enforcement officers who are among various public servants and several more who have applied for Biden’s SAVE plan. Furthermore, the Biden administration has forgiven $167 billion in student loan debt for 4.75 million people.

U.S. Secretary of Education Miguel Cardona gave a statement regarding the impact the forgiveness could have.

“One out of every 10 federal student loan borrowers approved for debt relief means one out of every 10 borrowers now has financial breathing room and a burden lifted,” said Cardona.

Biden's student loan plan has received a warm welcome from many citizens as well as from some U.S. Representatives.

“Student loan debt is an almost $2 trillion crisis in our country, and millions of Americans need relief. I'm pleased that @POTUS is exhausting every avenue to help borrowers disproportionately burdened by student debt,” said Texas Representative Veronica Escobar (D) about the new plan.

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Joshua Smith

Joshua Smith

Joshua Smith is a writer and recent graduate, majoring in English.

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