- ORIGINAL NEWS
Biden touts ‘fixed’ student loan forgiveness programs in State of the Union. Here’s what he meant
- SUMMARY
President Biden’s State of the Union address highlighted the government’s efforts to relieve student debt.
Two programs have been utilized to provide $138 billion in relief to nearly 4 million borrowers.
**Income-driven Repayment Plans:** These plans adjust monthly payments based on income to make them more manageable.
Previously, many borrowers didn’t receive the promised debt forgiveness after decades of payments due to mismanagement.
The Biden administration has reevaluated accounts and granted forgiveness to over 930,000 people.
**Public Service Loan Forgiveness:** Created in 2007, this program forgives loans after 10 years of qualifying public service.
Historically, borrowers were often denied due to technicalities.
The Biden administration has expanded eligibility and allowed reapplications, resulting in debt cancellation for 790,000 public servants to date.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“Here’s what to know about those programs.”
“Biden cited income-driven repayment plans and Public Service Loan Forgiveness.”
Negative
“Yet many borrowers paid into the system for decades without getting that promised cancellation, said higher education expert Mark Kantrowitz.”
“Navigating the Public Service Loan Forgiveness program has been famously difficult.”