More relief is on the way for some borrowers with large amounts of student loan debt. President Biden announced Monday, Jan. 13, that his administration is forgiving such debt for another 150,000 people.
The White House said the debt forgiveness will go to 85,000 people who attended schools that “cheated and defrauded their students,” 61,000 others who have a permanent disability and about 6,000 people who are now public service employees.
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Public employees will see $465 million in debt erased, while people with disabilities will have $2.5 billion forgiven. Students, with debt that the administration believes came from schools that acted fraudulently, will see $1.25 billion in debt removed.
The latest move brings a total of $183 billion in debt relief to roughly 5 million federal student loan borrowers during Biden’s time in office. The White House press secretary called it life-changing relief for families and said it allows them to spend money on other priorities, such as housing.
In 2023, the U.S Supreme Court blocked the president’s broader plan to deliver wide-scale student loan forgiveness to tens of millions of borrowers. Instead, the administration has gone through the Department of Education in maximizing existing debt relief programs.
