Biden says too many Americans are saddled with school debt as he cancels federal loans for 153,000

CULVER CITY, Calif. (AP) — President Joe Biden said Wednesday that while a college degree was still a ticket to a better life, that ticket is often too expensive, as he announced he was canceling federal student loans for nearly 153,000 borrowers.

Biden, who is in the midst of a three-day campaign swing through California, made the announcement as part of a new repayment plan that offers a faster path to forgiveness, putting the spotlight on his debt cancellation efforts in his reelection campaign.

“Too many Americans are still saddled with unsustainable debt in exchange for a college degree,” he said from a local library, before he went on to campaign-related events. Loan relief helps the greater economy, he reasoned, because ”when people have a student debt relief, they buy homes. They start businesses, they contribute. They engage.”

The administration began sending email notifications on Wednesday to some of the borrowers who will benefit from what the White House has called the SAVE program. The cancellations were originally scheduled to start in July, but last month the administration said it would be ready almost six months ahead of schedule, in February.

<bsp-list-loadmore data-module="" class=«PageListStandardB» data-gtm-region=«READ MORE» data-gtm-topic=«No Value» data-gtm-modulestyle=«List B»> <bsp-custom-headline custom-headline=«div»> READ MORE </bsp-custom-headline> <bsp-custom-headline custom-headline=«div»> Biden administration looks to expand student loan forgiveness to those facing ‘hardship’ </bsp-custom-headline> <bsp-custom-headline custom-headline=«div»> Some Americans will get their student loans canceled in February as Biden accelerates his new plan </bsp-custom-headline> <bsp-custom-headline