Biden announces fresh student loan relief for 150,000 Americans

US President Joe Biden on Wednesday (Feb 21) announced he was extending his student loan forgiveness programme by cancelling loans of an additional 150,000 Americans worth $1.2 billion.

The announcement is aimed at Biden's vote bank of young voters who cast ballots for him in large numbers during the 2020 presidential election.

"While a college degree is still a ticket to a better life, that ticket is too expensive.And too many Americans are still saddled with unsustainable debt in exchange for a college degree," said Biden.

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Despite the high-flying announcement, the debt relief only applies to those enrolled in a specific repayment plan who meet certain requirements.

The loan relief applies to those who enrolled in the voluntary Saving on a Valuable Education (Save) repayment plan and have been regularly making payments for at least 10 years, In addition, those who originally borrowed $12,000 or less for school are only allowed exemption under the scheme.

According to the Department of Education, 7.5 million people are enrolled in the repayment programme, which was created by the Biden administration.

Notably, the debt relief programme was not scheduled to kick into effect until July but the Biden administration last month said it would start ahead of schedule in February. Experts said the loan relief was a way for Biden to resurrect his plummeting approval ratings in the presidential race.

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Biden's poll plank

After the new debt relief measure was announced, Biden's campaign shared a statement from Maxwell Frost, the first Generation Z member of the US Congress.

"The President's actions on studentdebt are in stark contrast with Trump, who spent his entire time in office sabotaging efforts to aid borrowers who are just trying to make ends meet," said the 27-year-old congressman from Florida.

Read more: Joe Biden's 'game-changing' student loan forgiveness progamme launched; 8 million applications in already

Ever since the announcement regarding the programme was first made by Biden, Republicans have trashed it saying it is a waste of government funds that could be put to better use.

However, Biden has stuck with his poll promise and so far, nearly $138 billion of federal student loan debt has been cancelled for almost four million borrowers.

(With inputs from agencies)