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.
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.
