Biden Cancels $4.28 Billion in Student Loans

The Biden administration has announced the cancellation of another $4.28 billion in student loan debt for approximately 54,900 public service workers, marking a significant final act of loan forgiveness before President-elect Trump takes office. This relief is part of the Public Service Loan Forgiveness (PSLF) Program, which allows eligible borrowers, such as teachers and law enforcement officials, to have their loans forgiven after making 120 qualifying payments over ten years. Since taking office, Biden has forgiven nearly $180 billion in student loans for 4.9 million borrowers, a dramatic increase from only 7,000 who had received forgiveness prior to his presidency. However, widespread relief efforts have faced legal challenges from Republican states, limiting the administration's ability to deliver broader debt cancellation. Education Secretary Miguel Cardona emphasized the administration's commitment to fixing the PSLF program, which previously had a 99% rejection rate. Despite these efforts, Biden's goal of mass student loan cancellation remains unfulfilled as he prepares to leave office.