BREAKING: Biden admin announces plan to wipe out $39 billion in student debt

White House Press Secretary Karine Jean-Pierre (L) and Education Secretary Miguel Cardona talk to reporters during the daily news conference in the Brady Press Briefing Room at the White House on June 30, 2023 in Washington, DC. Cardona fielded questions about recent U.S. Supreme Court decision blocking President Joe Biden's program to forgive billions of dollars in student loan debts. (Photo by Chip Somodevilla/Getty Images)White House Press Secretary Karine Jean-Pierre (L) and Education Secretary Miguel Cardona talk to reporters during the daily news conference in the Brady Press Briefing Room at the White House on June 30, 2023 in Washington, DC. Cardona fielded questions about recent U.S. Supreme Court decision blocking President Joe Biden’s program to forgive billions of dollars in student loan debts. (Photo by Chip Somodevilla/Getty Images)

by Reagan Reese, Contributor Daily Caller News Foundation

The Department of Education (DOE) announced Friday that it will automatically forgive $39 billion of student loan debt for more than 804,000 borrowers, following a recent ruling by the Supreme Court that blocked the administration’s plan to grant forgiveness to nearly 40 million Americans.

The DOE will start notifying borrowers Friday that their federal student loans “will be automatically discharged in the coming weeks,” according to a DOE press release. The Supreme Court ruled 6-3 in June that the Biden administration cannot use executive power to cancel up to $10,000 in student loan debt for non-Pell Grant recipients and up to $20,000 for Pell Grant recipients. 

“For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness,” Miguel Cardona, DOE secretary, said in a statement. “Today, the Biden-Harris Administration is taking another historic step to right these wrongs and announcing $39 billion in debt relief for another 804,000 borrowers.”

The DOE estimates that its plan will save student loan borrowers at least $1,000 per year. The expansion of the income-driven repayment plans are estimated to cost taxpayers more than one-time outright forgiveness would, according to a Penn Wharton Budget Model report.

In June, the DOE announced that it would circumvent the Supreme Court’s ruling through the use of the Higher Education Act and an expansion of income-driven repayment plans, which would slash payments for those making $32,800 or less annually to $0. Borrowers who missed their loan payments within the first year, beginning on Oct. 1, will not be penalized, put in default or reported to credit and collection agencies.

“At the start of this Administration, millions of borrowers had earned loan forgiveness but never received it. That’s unacceptable,” James Kvaal, under secretary, said in a statement. “Today we are holding up the bargain we offered borrowers who have completed decades of repayment.”

The Supreme Court’s June decision involved two cases, Biden v. Nebraska and Department of Education v. Brown, which challenged whether the Secretary of Education had the emergency authority to cancel student loan debt.

“The Biden administration’s blatantly political attempt to circumvent the Supreme Court is shameful,” Republican North Carolina Rep. Virginia Foxx said in a Friday statement. “The Biden administration is trampling the rule of law, hurting borrowers, and abusing taxpayers to chase headlines. Biden’s student loan scam is far from over.”

Categories: Education

29 replies »

  1. Buying votes. The ultimate form of tyranny.

    First, reparations for African Americans to hold onto that voting block, and now this to get the “youth” to vote for this party again. Another four years of this and the country is DONE. There will be no fixing this and they know it – and are speeding to the finish line as fast as their Klaus Schwab little warped brains can get them there.

    • Whether we want to admit it or not, everything we do involving our fellow citizens (left, center and right), is a transaction. A negotiation. In other words, we all buy and sell our votes every day – when we buy groceries, a car, a home, clothing, and yes, a vote. And we all accept responsibility for the deals we cut. That’s life.

      The amazing feature with the U.S. Constitution is that it endeavors to protect our right to enter into these various transactions, or not to enter into them. And it provides a source of redress when the provisions of a deal are breached by one party or the other.

      Does this mean people can’t cheat or break the law? No. Of course not. The Constitution provides a process for remedy, not a guaranty of lawful behavior.

      In this case, the Biden administration is breaking the law – as determined by the ‘supreme’ law of the land – the SCOTUS. It is the responsibility of the damaged parties, then, to yet again file for redress of their grievances.

      Sooner or later, the Biden administration lawbreakers will be held to account, by judicial means, or by the other alternatives provided for in our Constitution… including those enumerated in the Bill of Rights.

      Again, what happens next is anyone’s guess.

  2. This strikes me not only as an abuse of taxpayers, but a circumvention of congress. This “expansion” costs $39 billion. Isn’t the House of Representatives the branch of government authorized to spend taxpayer money?

    • Yes, it is the responsibility of the House of Representatives to oversee the spending of taxpayer money. Unfortunately, Vermont does not have a responsible person in the House of Representatives to represent the best interests of the people of Vermont–we have Balint…

      • This is continuing example of political and economic lawlessness. The Biden administration, and everyone supporting it (e.g., the DOJ, FBI and others), is breaking the law… with impunity. Their retort is – ‘so, sue me’.

        We’ve reached the crossroads predicted by Benjamin Franklin in his address to the Constitutional Convention –

        “In these Sentiments, Sir, I agree to this Constitution, with all its Faults, if they are such: because I think a General Government necessary for us, and there is no Form of Government but what may be a Blessing to the People if well administred; and I believe farther that this is likely to be well administred for a Course of Years, and can only end in Despotism as other Forms have done before it, when the People shall become so corrupted as to need Despotic Government, being incapable of any other “

        What happens next is anyone’s guess.

  3. Outrageous. Time for another lawsuit, this time against the DOE for trying to burden taxpayers with other people’s debts. Those who made the decision to borrow should be the ones to pay. Although the DOE thinks we’re a communist country, and working hard to make it so; I’ve got news for them, we are NOT, and they can’t nullify the Constitution.

    • Though they’re doing a pretty good job in getting away with it thus far, thanks to the Deep State, Mitch McConnell & his swamp monsters, the Biden Crime Syndicate, and foreign globalists & Communists countries/billionaires. The USA is the laughingstock of the world. We are ripe for China’s taking.

      We ARE 1984.

      • Yes, we are 1984. Except there are 470,000,000 firearms in the citizens hands.

      • Indeed. As MIke Tyson opined: “Everyone has a plan ’till they get punched in the mouth.”

      • Who is the laughingstock? People in other countries laugh at how stupid Americans are to not appreciate how great a country they live in. We are the number one destination for immigration in the world. Always has been and will be despite the lefties spending huge amounts of money and energy trying to run our great nation down.

  4. What they fail to mention is that this dept doesn’t disappear. All tax payers , including those who never went to college, whose job options and income were negativity impacted for a lifetime because they didn’t go to college. I was blocked from promotions and unable to make anything over 35,000 dollars for 30 years. Nothing I did made a difference. I applied myself, and was an exemplary employee. I didn’t meet the criteria of having a college education. I finally finished college at 55. I paid for school class by class, and over a very long period of time. It burns me up that I have to now pay additional taxes for the privileged college graduates who don’t want to pay their student loans.

  5. I’m an orphan and was never able to go to college as I could not afford it.
    Could afford tuition but not keep a roof over my head or anything else that life requires.
    So I took every dirty nasty job I could each one paying a little better than the last and
    always tried to learn from each job before moving on.
    I spent many years living in a tar paper shack eating beans, sgetti & roadkill.

    Just to get taxed out of existence in my later years just to pay for some Nonbinary Liberal DoucheNozzle who spent 250k on a degree in “18th century lesbian theater studies”, and consequently wonders why they can’t get a good paying job.


    • Agree with you Red and so very sad that there are many, thousands of people who are and were in your position only to have all they’ve worked for to be slapped in the face by this Marxist Regime. I’ve paid my debt off and I’m so sure that thousands of us are so steaming mad about this, as they’ve paid their debt off as well. It’s certainly is an upside-down Clown World right now. These are the End Times and all prophecy is coming true. For those who are in the Lord, this world is not our Home, keep an eye to the sky, keep your lamp full of oil for the time is near. God will not be mocked. Spread the Good News to All who will hear. Woe to the evildoers for they will be the ones to experience God’s Wrath if they do not repent of their evil ways. God knows the heart of each person and Justice will prevail.

  6. Buying votes with someone else’s money . . . We are reminded once again of the words of Congressman Davy Crockett, “Mr. Speaker, I have said we have the right to give as much of our own money as we please. I am the poorest man on this floor. I cannot vote for this bill, but I will give one week’s pay to the object, and if every member of Congress will do the same, it will amount to more than the bill asks.” See,

  7. As far as I am aware, nobody is forced to receive these funds, just like nobody was forced to receive COVID relief $$$. Simply OPT OUT.

    • Can I opt out of paying my taxes? These borrowers had the option of opting out of taking out these loans in the first place. The point is that the rest of us are expected to pay off their debts.

      • Correct.

        If only we could ‘opt out’ of paying for this nonsense.

  8. This is not really vote buying , it is a scam. He will jerk around the people who actually believe him, you know the ones who did before and then as with the last time he ran his mouth about what HE is gonna do, he will be slapped down and you will have given him what he wants be it money or votes. What did he give you , nothing. The issue has already been decided.

    It really is nothing more than a big scam to have you believe you are getting something for nothing. Funny, based on today’s college grad you are really getting nothing for decades of slavery. Funny indeed. No one reads the laws about student loans. Did any of you actually READ that? The contract first , then the law or whichever would have told you you are stuck in slavery and being too addicted to “credit” you are really wanting nothing more than a new fix. This is how they suck you in. There are ways to free yourself without relying on the gubment to save you.

  9. Reading the fine print. This program is for loans that were already on a track that would lead to write offs i.e. after paying 20 or 25 years, relief is given. The program was already on the books. SO….NO SURPRISE… all of today’s hoopity-haa is simply about putting on a show, and nothing more. Surprised??????

    • It’s not just fine print. Just last week, the Supreme Court struck down President Biden’s previous groundbreaking plan to forgive some or all federal student loan debt for tens of millions of Americans.

      I repeat – ‘some OR ALL federal student loan debt…’

      Standard deep state operating procedure: Recharacterize the plan as ‘a fix’ to an existing plan.

      Under your logic, slavery, in a modified version, would still be okay because the modification was a fix to a pre-existing construct.

      See you all in court….. again soon.

  10. Hello…..this is nothing new. This what happens when the everyone gets a trophy and a check generation expects everything to be taken care of for them. We allowed this…..we can stop it. The question is, have too many accepted being silenced to the point of giving up????? What do you expect from a president who hides and covers up for his son, and where do you think said son learned it?

  11. The real culprits are the colleges and universities that gave all that money away to pay for the outrageous spending they did. It shouldn’t be the taxpayers paying this. It should be the colleges and universities.

  12. I disagree the real culprit is the government. They took over the loan scheme and then allowed students to borrow money for degrees that are worthless. All the schools did was create a bunch of classes to teach Marxism disguised as psychological mumbo jumbo. Just more of the government training people they must depend on the government for EVERYTHING.

  13. Biden is revving up the govt printing presses to selectively buy the votes of those he believes will vote for democrats. If someone in high school worked evenings, graduated and took out a loan to buy landscaping or earth moving equipment as their chosen way of investing in a future way to earn a living, will those loans be forgiven?

  14. Clown world
    My house mortgage and Harley payment now identify as school loans. Show me the money

  15. In addition to all the reasons this is bad, they have not addressed the root cause of such high debt and poor educational training. Higher education need to be reformed and stop charging so much money. This is a giant band-aid with no attention to the wound.