At the end of June, the US Supreme Court ruled that a partial waiver on student loans was illegal. Now the government has found a way to relieve 800,000 people financially.
After his defeat in the Supreme Court, US President Joe Biden is trying to keep his promise to partially waive student loans – albeit initially at a lower level.
His government announced that a total of 39 billion US dollars (around 34.7 billion euros) in debt should be canceled for a good 800,000 borrowers. These are adjustments made by loan managers to collect debt for the government, it said.
At the end of June, the US Supreme Court ruled that a legally different and much larger planned student loan waiver was illegal. The US government has exceeded its powers with this plan and needs the approval of the US Congress, it said in the verdict. More than 40 million Americans would have benefited from the partial student loan waiver. The Independent Budget Office of the US Congress estimated that this would have cost about 400 billion US dollars (about 366 billion euros).
The decree that has now been announced is significantly lower and of a different nature. The plans were announced last year and were not affected by the Supreme Court ruling. Millions more people will also be notified that their loans will be adjusted under the program. The relief applies only to those who have repaid their debt through a specific program run by the US Department of Education. According to US media, credit collectors have made major mistakes in recent years.
Source: Stern
I have been working in the news industry for over 6 years, first as a reporter and now as an editor. I have covered politics extensively, and my work has appeared in major newspapers and online news outlets around the world. In addition to my writing, I also contribute regularly to 24 Hours World.
