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President Joe Biden announced on Friday the cancellation of $4.28 billion in student debt for 55,000 public service workers, a significant move in the final weeks of his presidency.
“Over the last four years, we have made significant progress for students and borrowers, including securing the largest increase to the maximum Pell Grant award in over a decade,” Biden said in a statement from the White House.
The president highlighted his administration’s efforts to “hold institutions accountable for taking advantage of students” and to “fix broken student loan programs such as Public Service Loan Forgiveness and Income-Driven Repayment.”
Biden noted the broader impact of the administration’s actions, adding, “Because of our actions, millions of people across the country now have the breathing room to start businesses, save for retirement, and pursue life plans they had to put on hold because of the burden of student loan debt.”
This latest round of student debt forgiveness marks one of many initiatives Biden has rolled out during his tenure. To date, his administration has forgiven $180 billion in student loans for approximately 4.9 million borrowers, more than any prior administration, according to CNBC.
Biden’s previous efforts to implement broader debt relief faced legal challenges. In 2023, the Supreme Court ruled 6-3 against a $400 billion debt cancellation plan, stating the measure exceeded presidential authority. That plan sought to cancel $10,000 in debt per borrower earning less than $125,000 annually and $20,000 for Pell Grant recipients.
Despite the setback, the Biden administration has announced smaller, targeted forgiveness packages. For example, in April 2024, the president approved the cancellation of $7.4 billion in student debt for 277,000 borrowers.
The White House emphasized its commitment to providing relief wherever possible. “This move reinforces the President’s commitment to using every path available to deliver student debt relief to as many borrowers as possible through various actions,” the administration stated.
Republicans have largely criticized Biden’s debt cancellation initiatives, accusing him of using the policies to secure political support for himself and his party.
The latest debt forgiveness initiative continues Biden’s focus on public service workers, following improvements made to programs like Public Service Loan Forgiveness, which had been plagued by red tape and inefficiencies prior to his administration.
