Breaking News: Biden Administration Forgives $4.5 Billion in Student Debt
In a major move to alleviate the burden of student loans, the Biden administration has announced the forgiveness of $4.5 billion in student debt for over 60,000 borrowers. This latest round of relief is a result of the U.S. Department of Education’s efforts to fix the troubled Public Service Loan Forgiveness (PSLF) program.
A Commitment to Public Service Workers
President Joe Biden, who has forgiven more education debt than any other president in U.S. history, emphasized the importance of supporting public service workers, including teachers, nurses, firefighters, and more. “These individuals are the backbone of our communities and our country,” Biden said. “It’s time for the government to live up to its commitments and provide them with the relief they deserve.”
A Program Plagued by Problems
The PSLF program, signed into law in 2007, was designed to allow certain not-for-profit and government employees to have their federal student loans canceled after 10 years. However, the program was marred by issues, with borrowers often discovering they didn’t qualify due to technicalities such as loan type or repayment plan. Before Biden took office, only 7,000 people had received debt relief under PSLF, with a rejection rate as high as 98% in some years.
Reforms Bring Relief
Under Biden, the U.S. Department of Education has relaxed the program’s requirements and overhauled its management. As a result, borrowers eligible for this round of relief will soon learn of their cancelled debt, with an average balance of around $70,000.
A Key Issue in the Upcoming Election
Thursday’s announcement comes as the presidential election heats up, with Vice President Kamala Harris and former President Donald Trump holding differing views on student loan relief. Harris has promised to strengthen the PSLF program, focusing on helping more Black men become public school teachers, while Trump has called for the program’s elimination.
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