Biden cancels $4.28 Billion in student debt for public service workers

Dec 20, 2024

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Jack Aylmer Anchor

By Jack Aylmer (Anchor), William Jackson (Producer), Kaleb Gillespie (Video Editor)

The Biden administration has announced $4.28 billion in student loan forgiveness for 55,000 public service workers. This latest round of cancellations brings the total amount of debt relief approved by President Joe Biden to nearly $180 billion for approximately 4.9 million borrowers.

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The borrowers included in the announcement are part of the Public Service Loan Forgiveness (PSLF) program. The Obama administration established the program in 2007.

The program forgives federal student loans for government and nonprofit workers. However, they’d only qualify after 10 years of making qualifying payments.

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Historically, people have criticized the program for its complexity. The Biden administration overhauled the program in 2021 to simplify the process.

The administration highlighted the program’s impact, stating it has allowed borrowers to pursue financial and life plans previously delayed by student loan debt.

Uncertainty looms over the future of debt-relief initiatives as the Trump administration prepares to take office.

Many borrowers were approved but are still waiting for forgiveness. Many have expressed concerns about how the upcoming administration will handle the program.

During his first term, President-elect Donald Trump’s administration delayed forgiveness for students defrauded by for-profit colleges.

Federal courts have blocked many of Biden’s efforts for broader student loan relief. That includes a plan to forgive debt for more than 25 million borrowers.

Federal judges also halted the Biden administration’s SAVE repayment program before it could be fully implemented.

Tags: Donald Trump, Joe Biden, Loans, Student loan debt, Student loan forgiveness, Student Loans

[Jack Aylmer]

THE BIDEN ADMINISTRATION ANNOUNCED THE CANCELLATION OF 4 POINT 28 BILLION DOLLARS IN STUDENT LOAN DEBT FOR 55,000 PUBLIC SERVICE WORKERS, BRINGING THE TOTAL STUDENT DEBT RELIEF APPROVED DURING BIDEN’S PRESIDENCY TO NEARLY 180 BILLION DOLLARS FOR ROUGHLY 4 POINT 9 MILLION BORROWERS.

THE BORROWERS INCLUDED IN FRIDAY’S CANCELLATION ARE PART OF THE PUBLIC SERVICE LOAN FORGIVENESS PROGRAM, WHICH FORGIVES FEDERAL STUDENT LOANS FOR GOVERNMENT AND NONPROFIT WORKERS AFTER 10 YEARS OF PAYMENTS. THE PROGRAM, ESTABLISHED IN 2007, FACED CRITICISM FOR BEING DIFFICULT TO NAVIGATE. IN 2021, THE BIDEN ADMINISTRATION IMPLEMENTED CHANGES TO ADDRESS ADMINISTRATIVE CHALLENGES AND SIMPLIFY THE PROCESS.

PRESIDENT BIDEN SAYS THE INITIATIVE PROVIDED RELIEF FOR BORROWERS, ALLOWING THEM TO MOVE FORWARD WITH FINANCIAL AND LIFE PLANS IMPACTED BY STUDENT LOAN DEBT.

CONCERNS REMAIN ABOUT THE FUTURE OF DEBT-RELIEF PROGRAMS UNDER THE INCOMING TRUMP ADMINISTRATION. SOME BORROWERS APPROVED FOR RELIEF BUT STILL AWAITING FORGIVENESS ARE UNCERTAIN ABOUT HOW THESE PROGRAMS WILL BE HANDLED.

DURING HIS FIRST TERM, PRESIDENT-ELECT DONALD TRUMP’S ADMINISTRATION DELAYED LOAN FORGIVENESS FOR STUDENTS DEFRAUDED BY FOR-PROFIT COLLEGES.

BROADER STUDENT LOAN CANCELLATION PLANS UNDER BIDEN, INCLUDING A PROGRAM THAT SOUGHT TO FORGIVE DEBT FOR MORE THAN 25 MILLION BORROWERS, WERE BLOCKED BY FEDERAL COURTS.

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