As President Biden and Vice President Harris's term concludes, their administration has unveiled a substantial $4.28 billion student loan forgiveness initiative, benefiting approximately 54,900 public sector employees. Education Secretary Miguel Cardona highlighted the administration's commitment to addressing the challenges within the Public Service Loan Forgiveness (PSLF) program.
This latest action elevates the total student loan forgiveness sanctioned by the Biden administration to a staggering $180 billion, impacting close to 5 million borrowers.
Cardona emphasized the administration's dedication to assisting working individuals, citing the revamped PSLF program as a prime example. The program aims to incentivize public service careers by offering loan forgiveness after 120 qualifying monthly payments.
This recent round of forgiveness encompasses borrowers who benefited from the limited PSLF waiver, which expired in October 2022, as well as those who qualified through program improvements implemented during the Biden administration.
Student loan forgiveness was a key component of Biden's 2020 presidential campaign. However, his efforts have faced significant legal hurdles, including a Supreme Court ruling that blocked his initial broad-based forgiveness plan. Following this setback, the administration has explored alternative avenues for providing student loan relief.
While President-elect Trump's specific approach to the existing student loan forgiveness programs remains unclear, he has expressed intentions to overhaul the education system during his presidency.
