With just one week left in his presidency, President Joe Biden announced a new round of student loan forgiveness for 150,000 borrowers. Although he fell short of his broader promise to cancel student debt on a larger scale, the White House confirmed in a press release that Biden has now forgiven loans for a total of 5 million borrowers during his term.
According to NBC News, Biden stated that he has âforgiven more student loan debt than any other administration in history,â highlighting the administrationâs aggressive efforts to address the student debt crisis.
Biden Student Loans: Expansion of Public Service Loan Forgiveness
The most recent round of student debt relief targets specific groups of borrowers:
- 80,000 borrowers defrauded by their schools
- 60,000 borrowers with permanent disabilities
- 6,000 public service workers
Despite the Supreme Court blocking Bidenâs initial broad student debt relief plan, the administration found ways to expand existing loan forgiveness programs. One notable example is the Public Service Loan Forgiveness (PSLF) program, which allows public service workersâsuch as teachers, firefighters, and nursesâwho have made consistent payments for 10 years to have their remaining debt forgiven.
Biden also touted the expansion of Pell Grants, which provide essential financial aid to low-income students. By increasing the maximum award amount, the administration aimed to make higher education more affordable for those in need.
Student Loan Forgiveness 2025: Whatâs Next for Borrowers?
Bidenâs administration has made significant progress in canceling debt, but questions remain about the future of student loan forgiveness in 2025 and beyond. Of the 5 million borrowers whose loans have been forgiven:
- 1.4 million borrowers had been making payments for over a decade before receiving forgiveness.
- 1 million public service workers, including first responders, educators, and nonprofit employees, had their loans canceled.
- 1.7 million borrowers who were victims of fraud by predatory schools saw their debts erased.
- 663,000 borrowers with permanent disabilities had their loans forgiven.
Biden Student Loan Forgiveness Faces Political and Legal Pushback
This latest move by the Biden administration follows the Department of Educationâs recent decision to block plans for broader loan forgiveness. President-elect Donald Trump and many of his supporters have been vocal critics of Bidenâs student debt relief programs, arguing that widespread loan cancellation would place an undue financial burden on taxpayers and significantly increase the national debt.
Opponents of student loan forgiveness claim that the policy is unfair to those who have already paid off their loans or chose not to take on student debt. They argue that the focus should be on reducing the cost of higher education rather than canceling existing debts.