JUST IN: Biden Administration Officially Admits Defeat On Top Campaign Promise

The Biden administration has recently withdrawn two significant student loan forgiveness proposals that aimed to provide relief to millions of borrowers. The decision comes amid legal challenges and the impending transition to the second Trump administration.

On December 20, the Department of Education announced the withdrawal of two proposed regulations intended to cancel student debt for over 38 million borrowers. These plans faced legal obstacles, including a federal judge’s preliminary injunction following a lawsuit from Republican attorneys general. The Department cited operational challenges and the need to prioritize assisting borrowers resuming payments after the pandemic-induced pause as reasons for the withdrawal.

The proposed forgiveness plans encountered significant opposition, with critics arguing they were unconstitutional and amounted to an unfair wealth transfer. The Department of Education maintained that it possesses the authority to forgive student loans for borrowers meeting certain criteria or facing financial hardship. However, officials concluded that there wasn’t sufficient time to implement the proposals before Joe Biden’s term concludes on January 20, 2025.

Officials and allies from Trump’s transition team have been actively seeking strategies to rapidly dismantle the various student debt relief initiatives introduced under Biden.

BROOKLYN, N.Y. – April 3, 2021: Demonstrators protest near Grand Army Plaza during a rally to cancel student loan debts.

“In light of the comments received and those various pending court cases, the department has determined not to regulate on this issue at this time,” officials wrote. Despite the withdrawal of these broad forgiveness initiatives, the Biden administration has continued to provide targeted debt relief through existing programs. On Friday, the Department of Education announced the cancellation of $4.28 billion in student loans for public service workers, bringing the total debt forgiven during Biden’s tenure to approximately $180 billion for nearly 5 million borrowers.

Agency officials noted, “With the time remaining in this Administration, the Department is focused on several priorities.” They further emphasized their current goal: “The Department at this time intends to commit its limited operational resources to helping at-risk borrowers return to repayment successfully.”

“The Biden administration knew that the proposals for broad student loan forgiveness would have been thwarted by the Trump administration,” higher education expert Mark Kantrowitz said, highlighting the expected challenges to Biden’s policies.

The withdrawal of these broad forgiveness plans means that many borrowers will not receive the anticipated debt relief. As the administration focuses on assisting borrowers in resuming payments, individuals are encouraged to explore existing relief programs, such as income-driven repayment plans and the Public Service Loan Forgiveness program, to manage their student loan obligations.

The Supreme Court, in a 6-3 decision, blocked Biden’s plan to cancel $10,000 to $20,000 in student debt for 40 million borrowers using emergency COVID-19 powers earlier this year. Reacting quickly, Biden directed the Education Department to seek alternative debt relief methods under existing law. A proposal from April would forgive the debts of roughly 30 million Americans based on factors like accrued interest and prolonged debt periods.

“President Biden’s proposals would have freed millions from the crushing weight of the student debt crisis and unlocked economic mobility for millions more workers and families,” said Persis Yu, deputy executive director and managing counsel of the Student Borrower Protection Center, in a statement.

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