WASHINGTON (AP) — The Biden administration is canceling federal student loans for an additional 55,000 workers under an existing program called Public Service Loan Forgiveness.
Friday’s announcement from the Department of Education targets teachers, nurses, military personnel, law enforcement officers and others who achieved eligibility through the program. The program promises to eliminate loans after 10 years of service in government or nonprofit organizations.
The $4.28 billion in relief is expected to be the final round of public service loan forgiveness before President Joe Biden leaves office in January. After failing to deliver on his promise of comprehensive loan cancellation, Biden instead focused on expanding loan relief through programs created before his presidency.
Under Biden, the Education Department relaxed rules for forgiving public service loans, which previously had a 99% denial rate, because of the burdensome rules and widespread confusion about eligibility requirements.
With the latest round of relief, Biden has now canceled $180 billion in federal student loans through existing programs that cover 4.9 million Americans. This includes $78 billion for approximately 1 million borrowers through PSLF.
“From the first day of my administration, I promised to ensure that higher education is a ticket to the middle class, not a barrier to opportunity,” Biden said in a statement. “Thanks to our actions, millions of people across the country now have the opportunity to start businesses, save for retirement and pursue life plans that they had to put on hold because of student loan debt.”
Yet the Democrat has not achieved his goal of providing comprehensive aid to millions of other Americans. Biden’s first attempt at a mass cancellation was blocked by the Supreme Court, and his second attempt remains tied up in litigation by Republican states.
In October, he proposed another rule that would cut loans to people experiencing financial hardship, although that rule is unlikely to come into force.
Trump has not detailed student loan plans for his second term, but on the campaign trail he called Biden’s cancellation plans illegal and “despicable.” Republicans in Congress have criticized Biden over his resignation, saying it unfairly shifts the burden onto taxpayers who have not attended college or already repaid their loans.
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