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The long-awaited moment has arrived as President Joe Biden unveiled a new strategy on Wednesday with the goal of eliminating a greater portion of student debt.
The initiative is set to erase $9 billion in student loan obligations for 125,000 borrowers, all of whom have been participating in an income-driven repayment program, as announced by President Biden.
Education Secretary Miguel Cardona has pointed out that the income-driven repayment (IDR) program, established two decades ago, initially pledged to provide debt relief to borrowers but failed to fulfill its commitments.
“For years, millions of eligible borrowers were unable to access the student debt relief they qualified for, but that’s all changed thanks to President Biden and this administration’s relentless efforts to fix the broken student loan system,” Cardona says.
Despite the administration's attempts to eliminate student loan debt, recent statistics indicate that over 45 million Americans are still burdened with approximately $1.75 trillion in student loan obligations.