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Jimmy Williams
The Biden administration has announced the cancellation of $5 billion in student debt for 74,000 borrowers, marking a new wave of loan forgiveness.
President Joe Biden stated that 44,000 of the approved borrowers, including teachers, nurses, and firefighters, had their education debt wiped clean after a decade of public service. Additionally, nearly 30,000 borrowers who worked toward repayment for at least 20 years but did not receive relief through income-driven repayment plans are included in the latest round of loan forgiveness.
This move is part of ongoing efforts by the administration to address student loan debt, particularly after the Supreme Court struck down the White House’s broader student loan debt relief plan last year. The ruling found the plan unlawful as it lacked explicit approval from Congress. Following the decision, the administration has introduced smaller relief programs.
President Biden emphasized the administration’s commitment to delivering relief to borrowers and highlighted fixes made to address issues in student loan programs that hindered entitled relief under the law. This recent announcement brings the total number of individuals who have had debt canceled under the Biden administration to 3.7 million.
Earlier this month, the administration declared the elimination of federal student debt for specific borrowers who had taken out less than $12,000 in federal loans. In December, Biden approved about $4.8 billion in student debt cancellation for over 80,000 borrowers.
“From Day One of my Administration, I vowed to improve the student loan system so that a higher education provides Americans with opportunity and prosperity – not unmanageable burdens of student loan debt,” Biden said in a statement. “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.”
Despite the setbacks from the Supreme Court’s decision, Biden expressed determination to find alternative paths to deliver student debt relief to as many borrowers as possible. The administration continues to explore options to address the challenges posed by student loan debt and work toward providing relief to individuals burdened by educational loans.
