In a significant move just weeks before the November election, President Joe Biden has announced an additional round of student loan forgiveness, totaling $175 billion for nearly 5 million borrowers. This marks a crucial effort by the Biden-Harris administration to address student debt amid ongoing legal challenges from Republican opponents.
Historic Debt Relief
Since taking office, President Biden has facilitated more than $175 billion in student loan cancellation, equating to about 11% of all outstanding federal student loan debt. This relief has primarily benefited those participating in the Public Service Loan Forgiveness (PSLF) program, which aims to forgive loans for public-sector workers such as teachers and nurses after they make 10 years of qualifying payments. Under Biden’s administration, over 1 million borrowers have received forgiveness through this program.
“For too long, the government failed to live up to its commitments,” Biden stated, emphasizing the challenges borrowers faced in obtaining relief prior to his administration. “We vowed to fix that.”
Improvements to Public Service Loan Forgiveness
Biden’s Department of Education has implemented significant changes to the PSLF program, making it easier for borrowers to qualify. This stands in stark contrast to former President Donald Trump, who proposed ending the program during his time in office. The latest announcement will provide approximately 60,000 borrowers with about $4.5 billion in debt relief under PSLF.
However, not all proposed relief measures have been successful. Biden’s one-time student loan forgiveness program, intended to cancel up to $20,000 of debt for many low- and middle-income borrowers, was struck down by the Supreme Court last year. As a result, although 16 million borrowers received notification of qualification, they did not receive the anticipated relief.
Ongoing Commitment to Student Debt Relief
Vice President Kamala Harris has reiterated the administration’s commitment to fighting for student debt relief, especially for those who have been promised help but have yet to receive it. During a recent podcast interview, she stated, “We are fighting, and I’m going to continue to fight for student debt relief. It’s a barrier to people being able to think, even think about starting a family or buying a home. We need to give people relief.”
Recent efforts by the Biden administration, including the Saving on a Valuable Education (SAVE) repayment plan, are currently embroiled in litigation initiated by Republican-led states. These states argue that the Department of Education lacks the authority to implement such costly debt-relief measures.
Efforts Against Legal Challenges
Despite the legal hurdles, the Biden administration continues to provide relief to borrowers through existing programs that target specific categories of relief. The administration has made it easier for approximately 572,000 permanently disabled borrowers to access their entitled debt relief. Additionally, more than 1.6 million borrowers defrauded by their colleges have received forgiveness, addressing a backlog that developed during the previous administration.
Education Secretary Miguel Cardona noted the skepticism surrounding the PSLF program before the Biden administration took action. “People lost faith. They called PSLF a cruel joke, a broken promise, and a nightmare,” he said. The Biden administration has since streamlined application processing and implemented a one-time review of borrowers’ past payments, correcting any errors that might have delayed their eligibility for relief.
