More Student Loans Canceled in Biden’s Final Round of Forgiveness before Leaving Office

By Evans Momodu
2 minute read


The Biden administration has announced the cancellation of federal student loans for an additional 55,000 workers through the Public Service Loan Forgiveness (PSLF) program.

This initiative provides relief to teachers, nurses, service members, law enforcement officials, and other eligible government and nonprofit employees, erasing their loans after 10 years of qualifying work.

The latest round of relief, totaling $4.28 billion, is likely the final action on PSLF before President Biden leaves office in January.

This brings the total amount of student loan forgiveness under Biden's administration to $180 billion, benefiting 4.9 million Americans. Of that, $78 billion has been granted to approximately 1 million borrowers through PSLF.

Biden highlighted the significance of these efforts in reducing financial barriers for Americans, enabling them to focus on savings, entrepreneurship, and long-term goals.

Despite these achievements, Biden's broader plans for widespread student loan cancellation have faced significant hurdles. His initial attempt was blocked by the Supreme Court, and subsequent proposals remain entangled in legal challenges from Republican-led states.

A new rule proposed in October aims to cancel loans for those facing financial hardship but is not expected to take effect soon.

Republicans, including President-elect Donald Trump, have criticised Biden's cancellation efforts, arguing that they shift the financial burden to taxpayers, particularly those who did not attend college or have already repaid their loans.

Trump has called Biden's plans "illegal" and "vile" while offering limited details about his administration's approach to student loans.
Source: 29news
Image: Fox