WASHINGTON (AP) — The Biden administration is ending federal cuts Student loans for an additional 55,000 workers through 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 relief is expected to be the last 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 Department of Education relaxed the rules for Public Service Loan Forgivenessthat previously had one 99% rejection rate amid onerous 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 did it fell tiny of its goal of providing comprehensive assistance to millions of other Americans. Biden’s first attempt at a mass cancellation was blocked by the Supreme Court, and his first attempt was also blocked by the Supreme Court second try remains entangled in one Litigation brought by republican states.
In October, he proposed another rule that would cancel loans for people facing various types of problems financial distressalthough it is unlikely to be effective.
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.
