On Friday, the Biden administration declared its decision to forgive nearly $5 billion in debt for around 73,600 student loan borrowers. Among the beneficiaries of this relief, over half, approximately 44,000 individuals, are educators, healthcare professionals, firefighters, and others who have participated in the Public Service Loan Forgiveness program for a decade. An additional group of almost 30,000 borrowers has been part of an income-driven repayment initiative for two decades.
This move by President Biden brings the cumulative number of borrowers who have experienced debt forgiveness during his administration to 3.7 million. In a statement, Biden attributed this accomplishment to corrective measures taken to rectify flaws in the student loan programs that were hindering eligible borrowers from receiving entitled relief.
The President underscored various achievements in the student loan landscape during his term, including the augmentation of federal Pell Grants, modifications to the Public Service Loan Forgiveness program, and the introduction of the SAVE income-driven repayment alternative. Despite facing a setback with the Supreme Court rejecting his proposal for universal student debt relief, Biden’s administration is actively developing an alternative plan for widespread loan forgiveness. However, it appears that this new initiative may not extend relief to as many borrowers as the previous one.
Biden reaffirmed his commitment to enhancing the student loan system from the outset of his administration, aiming to ensure that higher education empowers Americans with opportunities and prosperity rather than burdening them with unmanageable debt. He emphasized his determination to utilize every available tool to provide student loan borrowers with the necessary relief to pursue their aspirations.