In a significant move, President Joe Biden has taken steps to forgive $4.8 billion in student loans, offering relief to over 80,000 borrowers, including public sector employees and individuals who have been repaying federal debts for an extended period. The administration’s implementation of regulatory changes aims to enhance access to existing programs.
Under the newly enacted rules, the United States has cleared $2.6 billion in loans for over 34,000 federal, state, local, and nonprofit employees, encompassing professions such as teaching and military service.
Additionally, the administration has approved $2.2 billion in relief for nearly 46,000 borrowers who have been making income-based repayments over an extended timeframe.
Despite facing obstacles from the Supreme Court in achieving broad student loan relief, Biden has focused on expanding forgiveness through existing programs. According to the Department of Education, approximately 3.6 million borrowers have received a total of $132 billion in loan forgiveness under Biden’s initiatives.
In a statement, President Biden emphasized his commitment to improving the student loan system, aiming to ensure that higher education provides opportunities and prosperity instead of burdensome debt. He stated, “I won’t back down from using every tool at our disposal to get student loan borrowers the relief they need to reach their dreams.”
Following the Supreme Court’s decision, which struck down Biden’s proposal to forgive up to $400 billion in debt, the White House has expressed its intention to propose additional measures to alleviate student debt while adhering to legal requirements. Recently, the Education Department put forth a proposal to provide debt relief for low-income Americans whose current student loan balances exceed their original loan amounts.
