Biden administration made a significant announcement, declaring the forgiveness of nearly $5 billion in student loans for approximately 73,600 borrowers, as reported by The Hill. This move underscores President Biden’s dedication to tackling the escalating student debt crisis in the United States.
Of the beneficiaries, a notable portion, comprising almost 44,000 individuals, are dedicated professionals serving their communities in roles such as teaching, nursing, and firefighting. These borrowers have diligently participated in the Public Service Loan Forgiveness program for a decade, simultaneously contributing to societal betterment while managing the financial burden of their education.
Moreover, an additional 30,000 borrowers have received debt relief under the income-driven repayment program, having committed 20 years to this repayment plan. With this recent announcement, President Biden has extended debt forgiveness to a remarkable 3.7 million borrowers during his tenure, aligning with his administration’s commitment to rectifying issues within the student loan system and ensuring entitlements under the law.
More Read
In a statement, President Biden expressed satisfaction with the progress made, attributing the success to crucial fixes implemented in student loan programs. He stated, “My Administration is able to deliver relief to these borrowers — and millions more — because of fixes we made to broken student loan programs that were preventing borrowers from getting relief they were entitled to under the law.”
The President highlighted several achievements in the realm of student loans during his administration, including an increase in federal Pell Grants, pivotal changes to the Public Service Loan Forgiveness program, and the introduction of the SAVE income-driven repayment option.
Despite the recent defeat of his universal student debt relief proposal by the Supreme Court, President Biden affirmed his commitment to exploring alternative solutions for mass loan forgiveness. While the new plan may not reach as many borrowers as initially hoped, the administration remains steadfast in addressing the root causes of the student debt crisis.
“From Day One of my Administration, I vowed to improve the student loan system so that higher education provides Americans with opportunity and prosperity — not unmanageable burdens of student loan debt,” declared President Biden, emphasizing his commitment to easing the financial strain on individuals pursuing higher education. “I won’t back down from using every tool at our disposal to get student loan borrowers the relief they need to reach their dreams.”
