WASHINGTON, D.C. — In a major development, President Joe Biden has announced the cancellation of student loan debt for an additional 150,000 borrowers, adding $4.23 billion to his administration’s broader relief efforts. This brings the total debt forgiveness under Biden’s presidency to a staggering $183.6 billion, benefiting more than 5 million Americans.
The new wave of forgiveness targets specific groups of borrowers who have faced unique challenges, including defrauded students, individuals with disabilities, and public service workers.
Who Benefits From This Relief?
1. Defrauded Borrowers
Approximately 85,000 borrowers who attended schools that engaged in deceptive practices will have their loans forgiven. Many of these institutions misled students about the value of their education, leaving them with debt and little to show for it.
2. Borrowers with Disabilities
Another 61,000 individuals with total and permanent disabilities will have their student loans discharged. This group includes those who are unable to engage in significant work due to health challenges.
3. Public Service Workers
About 6,100 borrowers working in public service jobs, such as teachers, nurses, and government employees, will receive relief through the Public Service Loan Forgiveness (PSLF) program. The program forgives loans for individuals who make 120 qualifying payments while working full-time in public service roles.
Background on Biden’s Debt Relief Efforts
President Biden’s administration has faced obstacles in delivering broad student loan forgiveness. His previous plan to cancel up to $20,000 per borrower was struck down by the Supreme Court in 2023. Despite this setback, the administration has pursued targeted relief using existing legal mechanisms.
Key Programs Driving Relief:
- Borrower Defense to Repayment: Provides forgiveness for students who were defrauded by their schools.
- Total and Permanent Disability Discharge: Offers loan forgiveness for borrowers with serious disabilities.
- Public Service Loan Forgiveness (PSLF): Targets individuals in qualifying public service roles.
What’s Next?
As President-elect Donald Trump prepares to take office, the future of these programs remains uncertain. Biden’s administration has worked to solidify relief before the transition, but borrowers and advocates are concerned about whether these initiatives will continue under new leadership.
Borrowers eligible for this latest round of forgiveness will be contacted by the Department of Education. Those who believe they qualify but haven’t been notified are encouraged to reach out to their loan servicers or visit the Federal Student Aid website.
This move is another step in the Biden administration’s effort to address the student debt crisis, which has sparked intense debate across the nation.
