Leaving President Joe Biden's administration will be nothing if not hectic, with desks cleaned and preparations made for his final departure. On Friday, it announced that federal student loans for an additional 55,000 workers would be canceled through an existing program known as Public Service Loan Forgiveness.
Biden has now canceled an unprecedented $180 billion in federal student loans for 4.9 million Americans through existing programs during his term.
The total cost of Biden's latest Christmas charity act will be $4.28 billion, courtesy of U.S. taxpayers, who have traditionally left most of their contributions to workers. They questioned how fair such an action was in the circumstances.
AP report The Department of Education announced that people who qualify through the program, including teachers, nurses, military personnel and law enforcement officers, will have their loans erased after 10 years of work in government or nonprofit positions. is promised. The AP report provides relevant numbers for both recipients and amounts.
Under the Biden administration, the Education Department has relaxed rules for public service loan forgiveness, which previously had a 99% denial rate amid onerous rules and confusion over eligibility requirements.
With the latest relief package, Biden canceled an unprecedented $180 billion in federal student loans for 4.9 million Americans through existing programs. This includes $78 billion for approximately 1 million borrowers through PSLF.
“From day one in office, we promised higher education would be a ticket to the middle class, not a barrier to opportunity,” Biden said in a statement confirming the move.
“Thanks to our actions, millions of people across the country are able to start businesses, save for retirement, and pursue life plans they put on hold due to the weight of student loan debt. I was able to afford it.”
President-elect Donald Trump is less enthusiastic about student loan forgiveness and has made his opposition clear in the past.
Trump also used the 2024 campaign to slam Biden's cancellation plan as illegal and “despicable.”
Congressional Republicans slammed Biden's efforts to cancel the move, saying it unfairly shifts the burden to taxpayers who didn't attend college or have already missed out on loans.
