Biden Cancels $4.28 Billion in Student Loan Debt for Public Servants
President Joe Biden announced Friday a plan to cancel $4.28 billion in student loan debt for some 55,000 public sector workers, Bloomberg reports.
This action brings the total number of individuals receiving debt relief under Biden administration programs to nearly 5 million, with a total of roughly $180 billion forgiven.
The move is the latest in a series of efforts by the Biden administration to address student loan debt, a key campaign promise. However, the administration has faced significant legal challenges. The Supreme Court struck down a broader plan to forgive debt for over 40 million borrowers last year, and a subsequent alternative was temporarily blocked in federal court. Furthermore, the administration’s SAVE plan, designed to offer income-driven repayment options, was also temporarily halted by a federal appeals court.
This latest round of cancellations targets borrowers working in public service professions, including education, public health, law enforcement, and emergency response. The program forgives outstanding loan balances for those who have made 120 qualifying monthly payments.
“From day one of my administration, I promised to make sure that higher education is a ticket to the middle class, not a barrier to opportunity,” Biden said in a press release.
He emphasized that the debt relief provides millions of Americans with “the breathing room to start businesses, save for retirement, and pursue life plans they had to put on hold.”
The announcement comes as President-elect Donald Trump has voiced criticism of the administration’s student loan forgiveness initiatives.
