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Biden’s Student Debt Relief Plan Is a Victory for Borrowers

Washington, D.C. — Today, the Biden administration released an updated plan to deliver student debt cancellation to borrowers using President Biden’s authority under the Higher Education Act. This plan is the Biden administration’s second attempt to provide relief to borrowers, after the first plan was struck down by the Supreme Court last year. 

Candace Milner, Racial Equity Policy Associate with Public Citizen, issued the following statement in response:

“The impact of debt cancellation on borrowers and the American economy overall cannot be overstated. Borrowers who have been repaying loans for decades will finally see relief. People who have already paid their original balances will no longer be bogged down by the weight of ballooning interest. And borrowers who are facing hardship will have a chance to seek support when they are most vulnerable. 

“Black and Latino borrowers — who are disproportionately burdened by student loan debt — will find this relief to be timely and necessary. This plan is especially critical to provide relief to Black and Brown communities that have been consistently preyed on by high-interest loan providers, for-profit institutions, and low-value programs.

“Student loan debt has been a barrier to economic security for far too many Americans. With today’s announcement, President Biden and the Department of Education have delivered on an essential promise to Americans and given borrowers a chance to finally take a breath.”