Joe Biden’s latest Student Loan forgiveness plan: Who gets relief this time?
President Joe Biden announces a new student loan forgiveness plan targeting 150,000 borrowers, with $4.23 billion in relief. Learn who qualifies and how it impacts the student debt crisis.
The Biden administration continues its efforts to alleviate the student debt burden, announcing a new round of loan forgiveness that will benefit over 150,000 borrowers. This initiative cancels $4.23 billion in student loans, adding to the administration's record of targeted debt relief programs.
Since taking office, President Biden has prioritized student loan forgiveness, offering critical financial assistance to millions of Americans. This latest plan underscores his administration’s focus on addressing inequities in the student loan system, targeting groups such as defrauded students, borrowers with disabilities, and public service workers.
Who benefits from the new Biden's forgiveness plan?
The latest forgiveness plan specifically targets borrowers facing unique challenges. Among the beneficiaries are 85,000 individuals who were misled by their educational institutions. These borrowers attended schools that engaged in deceptive practices, such as promising unattainable career opportunities or misrepresenting their accreditation. This cancellation ensures that victims of such misconduct are not left bearing the financial consequences.
Additionally, the plan provides relief to 61,000 borrowers with total and permanent disabilities. For these individuals, repaying student loans is often an insurmountable challenge, and this forgiveness ensures they are no longer burdened by debt they cannot manage.
Another group receiving assistance includes 6,100 public service workers, such as teachers, healthcare professionals, and first responders. These individuals qualify for loan forgiveness under the Public Service Loan Forgiveness (PSLF) program, which rewards those who dedicate their careers to serving their communities.
Biden's initiative offers meaningful relief to over 150,000 borrowers in the US. Photo: AFP
Biden’s commitment to debt relief and critics around student loan forgiveness
Since the beginning of his presidency, Biden has made student debt relief a cornerstone of his domestic policy. To date, his administration has forgiven over $183.6 billion in student loans, benefiting more than 5 million borrowers. These efforts have provided targeted assistance to some of the most vulnerable groups, ensuring relief reaches those who need it most.
This commitment is especially noteworthy in light of the Supreme Court’s 2023 decision to block Biden’s broader forgiveness plan, which sought to cancel up to $20,000 in debt per borrower. Despite this setback, the administration has continued to implement narrower, legally defensible relief measures, focusing on targeted programs to support specific groups of borrowers.
While this latest plan offers significant relief to many, it also highlights the challenges of addressing the broader student debt crisis. Millions of borrowers outside these targeted categories continue to face mounting debt, fueling ongoing debates about the need for a more comprehensive approach.
Critics argue that targeted relief leaves many struggling borrowers without assistance, while proponents emphasize that these measures address systemic inequities and provide relief to those most in need. The issue remains a key point of contention in national politics, with the future of student loan forgiveness likely to depend on the priorities of the next administration.