More student loan borrowers will see their debt 'canceled' with taxpayers left picking up the tab

On Friday, the Biden administration announced it would move forward with another round of federal student loan cancellations, according to a White House press release.

"From Day One of my Administration, I vowed to fix the student loan system and make sure higher education is a pathway to the middle class – not a barrier to opportunity. Already, my Administration has cancelled student debt for 3.6 million Americans through various actions – delivering lifechanging relief to students and families, and we created the most affordable student loan repayment plan ever: the SAVE plan," the announcement stated.

The administration's commitment to "fix" the broken student loan system appears only to involve passing the costs onto taxpaying Americans, despite the Supreme Court's ruling in June that sweeping debt cancellations are unlawful.

Last year, Biden proposed unilaterally wiping out $10,000 of federal student loan debt for individuals making less than $125,000 yearly and married couples earning less than $250,000 yearly. Those who took out Pell Grants could see an additional $10,000 in loan cancellations.

In November, the Government Accountability Office revealed that Biden's sweeping debt cancellation program failed to implement safeguards to protect the federal government against fraud, Blaze News previously reported. According to the GAO, 26 million borrowers signed up to receive the relief were automatically approved without submitting updated income documentation.

Since the Supreme Court decided to strike down the program, the Biden administration has rolled out several smaller but similar programs that have, so far, eliminated over $132 billion of debt for 3.6 million borrowers.

On Friday, the White House declared it would cancel more debt through its Saving on a Valuable Education plan. According to the announcement, borrowers who took out less than $12,000 and have been in repayment for at least ten years will have their balances zeroed out "immediately."

"This action will particularly help community college borrowers, low-income borrowers, and those struggling to repay their loans," the administration stated.

Biden encouraged all federal student loan borrowers to sign up for the SAVE plan, noting that 6.9 million individuals are already enrolled and 3.9 million currently are paying $0 per month. The plan caps repayments at 5% of the borrower's monthly income.

"In the wake of the Supreme Court's decision on our student debt relief plan, we are continuing to pursue an alternative path to deliver student debt relief to as many borrowers as possible as quickly as possible. I won't back down from using every tool at our disposal to get student loan borrowers the relief they need to reach their dreams," the White House concluded.

Biden wrote in a post on X, "Imagine checking your student debt balance and seeing $0.00. Starting next month, many Americans enrolled in our SAVE plan will join the already 3.6 million who have seen their student debt cancelled by my Administration through various actions."

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