Biden administration forgives $1.2 billion in student debt, benefiting 35,000 public service workers

Biden administration forgives student debt (File)

In a big move, the Biden administration announced that it is forgiving $1.2 billion in student debt for 35,000 borrowers employed in public service, including teachers and firefighters. Under the Public Service Loan Forgiveness program, this action brings the total number of Americans benefiting from the administration's debt relief initiatives to 4.76 million people, with an average debt cancellation of over $35,000 per borrower.

"These 35,000 borrowers approved for forgiveness today are public service workers – teachers, nurses, law enforcement officials, and first responders who have dedicated their lives to strengthening their communities," President Biden emphasised. He highlighted that improvements made to the Public Service Loan Forgiveness program will provide these individuals with much-needed financial relief to better support themselves and their families.

The President also underscored the broader efforts his administration has undertaken to enhance educational affordability and support for students and borrowers. "From day one of my Administration, I promised to fight to ensure higher education is a ticket to the middle class, not a barrier to opportunity," he stated, reaffirming his commitment amidst ongoing challenges.

Biden reiterated his goal to cancel student debt for more than 30 million Americans. "Today’s announcement comes on top of the significant progress we’ve made for students and borrowers over the past three years," the statement noted.

In April, the White House also announced the cancellation of $7.4 billion in student debt for 277,000 borrowers. The administration's plans additionally involve relieving borrowers of up to $20,000 in interest, benefiting around 23 million borrowers by eliminating their accrued interest.

Today's announcement follows a series of measures aimed at expanding access to education, including increases to Pell Grants and reforms to Income-Driven Repayment plans. Looking ahead, President Biden outlined his administration's plans to further alleviate student debt burdens, aiming to cancel debt for more than 30 million Americans through comprehensive policies.

"I will never stop working to make higher education affordable – no matter how many times Republican elected officials try to stop us," President Biden concluded, addressing ongoing opposition to his education reform agenda.

The Biden administration's debt relief efforts covered participants in programs like the SAVE Plan and Income-Driven Repayment, plus those eligible for Public Service Loan Forgiveness, totaling $153 billion and aiding 4.3 million Americans.