The Biden administration has announced a significant step in student loan forgiveness, canceling $5 billion in debt for 74,000 borrowers. This action primarily benefits individuals who have served in public sector jobs for over a decade, including teachers, nurses, and firefighters. President Joe Biden confirmed that 44,000 of these borrowers, engaged in public service for 10 years, will see their education debt completely erased. Additionally, nearly 30,000 borrowers who have been working towards repayment for at least 20 years under income-driven plans will also receive relief.
This initiative is part of a series of targeted loan forgiveness efforts by the White House, following the Supreme Court’s rejection of a more comprehensive student loan debt relief plan last year. The court had ruled that the broader relief program, which aimed to cancel up to $20,000 in debt for about 43 million eligible borrowers, was unlawful due to lack of explicit Congressional approval.
Biden emphasized that the recent cancelations, which increase the total number of beneficiaries under his administration to 3.7 million, are due to reforms made to rectify issues in existing student loan programs. This latest round of forgiveness follows the administration’s decision earlier this month to eliminate federal student debt for certain borrowers with less than $12,000 in federal loans. In December, approximately $4.8 billion in student debt was canceled for over 80,000 borrowers. Biden assures ongoing efforts to provide student debt relief through alternative means in the wake of the Supreme Court’s decision.
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