Student Debt Forgiveness Announcement
Washington — President Biden announced Friday that his administration is forgiving $5 billion in student debt for another 74,000 borrowers, marking the latest round of debt cancellation since the Supreme Court voided the president's student loan forgiveness program.
Mr. Biden said that of the borrowers who can receive relief, nearly 44,000 are teachers, nurses, firefighters and others who are eligible for forgiveness after working 10 years of public service. Almost 30,000 of those who will have their debt wiped clean have been repaying their loans for at least 20 years, but did not get the relief they earned through income-based plans, the president said.
With the latest round of student loan forgiveness, more than 3.7 million Americans have had their debt erased under the Biden administration, Mr. Biden said.
"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," he 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."
Since the start of his presidency, Mr. Biden has implemented various initiatives to address the issue of student debt. One of these initiatives was the introduction of a new income-driven repayment plan last year. Additionally, he has forgiven debt for specific groups of borrowers, such as those who worked in public service and individuals with disabilities. In a recent announcement, the president stated that individuals who took out less than $12,000 in loans and have been making repayments for 10 years will have their remaining debt canceled, starting in February.
One of Mr. Biden's most ambitious initiatives was a program that aimed to provide relief to 40 million Americans, potentially wiping out up to $20,000 in student debt. However, in June, the plan was blocked by the Supreme Court. The court ruled that the loan forgiveness plan was not authorized under federal law.
