Biden admin canceling student debt for 750K households earning over $312K, analysis says

WASHINGTON (TND) — The Biden administration expanded student debt relief last week to roughly 750,000 households making over $312,000, according to an analysis by the Wharton School of the University of Pennsylvania.

Under the new provisions, dubbed "New Plans," the administration will eliminate undergraduate student debt for borrowers in repayment for at least 20 years. Graduate debt will also be eliminated for those paying back loans for more than 25 years.

The eliminated debt will purportedly amount to more than $25 billion from high-income households. The White House has argued the affected borrowers have had their share of “long-ago loans," but never received relief they were entitled to because of administrative issues.

The Wharton analysis states New Plans will relieve some long-term debt for approximately 750,000 families making over $312,000 annually. The reason for the "high average household income," according to the analysis, is that President Joe Biden’s Saving on a Valuable Education program "already provides long-term debt relief to households with lower incomes."

An $84 billion price tag is purportedly attached to the New Plans. Combined with the SAVE program, the two student debt relief programs will cost nearly $560 billion, according to the Wharton analysis.

Biden has sought to fulfill his campaign promise of canceling student debt, though he has previously faced legal challenges.

“From day one of my Administration, I promised to fight to ensure higher education is a ticket to the middle class, not a barrier to opportunity,” he said on April 12. “I will never stop working to cancel student debt – no matter how many times Republican elected officials try to stop us.”

READ MORE | Biden roasted after calling for 'fair' salaries in women's sports: 'Misogynistic dunce'

Missouri Attorney General Andrew Bailey, a Republican, threatened legal action following the release of New Plans. His actions coincided with comments from House Speaker Mike Johnson, R-La., who alleged the president’s policies were illegal and “backward.”

“The national debt is $34 trillion. Inflation is making life unaffordable and this administration is now forcing the American people to pay the costs of student loans that borrowers willingly signed up for,” Speaker Johnson stated.

Last year, the Supreme Court ruled against Biden’s previous student debt relief program. The court’s opinion stated Biden lacked the authority to direct Education Secretary Miguel Cardona to cancel a large amount of debt without congressional authorization.

“Can the Secretary use his powers to abolish $430 billion in student loans, completely canceling loan balances for 20 million borrowers, as a pandemic winds down to its end?’” Chief Justice John Roberts offered. “We can’t believe the answer would be yes.”

Follow Ray Lewis on X for trending national news @rayjlewis or send a tip to rjlewis@sbgtv.com.