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Loan forgiveness plan would wipe out $100 million in North Dakota student debt

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(The Center Square) – New information on the Biden administration’s student loan forgiveness plan would wipe out $100 million in debt for 2,110 North Dakotans, according to the White House.

Eligible borrowers began receiving notices last Friday, according to a news release.

Biden’s program would wipe out $39 billion in student loan debt for 804,000 borrowers. The president announced the plan after the U.S. Supreme Court struck a plan which would have discharged $10,000 in loans for qualified borrowers and $20,000 for Pell Grant recipients. The court ruled that Biden did not have the authority to erase the debt.

The student loan forgiveness plan could cost taxpayers $475 billion over the 10-year budget window, according to data by the Penn Wharton Budget Model.

North Dakota’s senators have been critical of Biden’s plans to forgive some student debt.

“The pandemic is over and so is the student loan forgiveness saga,” U.S. Sen. Cramer, R-N.D., said after the U.S. Supreme Court ruling. “Untargeted student loan forgiveness is theft, and I am grateful the Court recognized it as such.”

Student debt can be alleviated in other ways, according to U.S. Sen. John Hoeven, R-N.D. The Employer Participation in Repayment Act allows employers to offer student loan repayment as a benefit of up to $5,250 a year.

“President Biden’s student loan debt cancellation is not a solution to the issue of college affordability, and it is unfair to ask taxpayers who already paid off their loans or who did not go to college to cover this cost,” Hoeven said.

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