Telegram is where we really talk. Don't miss out!
President Joe Biden announced on Friday the cancellation of $4.28 billion in student debt for 55,000 public service workers through reforms to the Public Service Loan Forgiveness (PSLF) program. This brings the total debt relief under Biden’s administration to nearly $180 billion for 4.9 million federal borrowers since 2021.
“The public servants approved for debt cancellation today include teachers, nurses, service members, law enforcement officials, and other public service workers who have dedicated their lives to giving back to their communities and who are finally earning the relief they are entitled to under the law,” Biden stated.
In his announcement, Biden highlighted his administration’s broader efforts to support federal students and borrowers, including increasing Pell Grant awards, addressing predatory institutions, and reforming broken student loan programs like PSLF and income-driven repayment plans.
“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 wrote. “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.”
White House Chief of Staff Jeff Zients signaled last week that Biden planned additional student debt cancellation before President-elect Donald Trump’s inauguration on January 20. “The president will also announce more student debt cancellation for public service workers and other borrowers,” Zients wrote in a memo.
Katharine Meyer, a fellow at the Brookings Institution’s Brown Center on Education Policy, noted that Biden could pursue more federal debt cancellation through borrower defense applications. However, Meyer warned, “Time is running out to enact any of those policies.” She added that lower courts are closely monitoring potential widespread forgiveness efforts, citing recent legal challenges.
Biden’s efforts to alleviate student debt have faced significant Republican opposition. Federal courts have struck down various initiatives, including the Saving on a Valuable Education Act and income-driven repayment programs. In October, a federal judge ruled against Biden’s attempts to revive those plans, following a Supreme Court decision earlier this year rejecting his original proposals.
Prominent Democrats, such as Sen. Ed Markey (D-MA), Sen. Dick Durbin (D-IL), and Rep. Maxine Waters (D-CA), continue to urge Biden to provide relief to borrowers defrauded by predatory schools. “We are here to demand that the Department of Education deliver on President Biden’s commitment to debt relief and process all outstanding borrower defense relief before President Trump slams the door shut on borrowers on Jan. 20,” Markey recently told reporters.
Among the reforms to PSLF is its transfer to direct oversight by the Department of Education through StudentAid.gov, streamlining the process for borrowers. Outgoing Education Secretary Miguel Cardona noted that this change makes it “easier for borrowers to track their progress toward forgiveness.”
