
President Biden’s administration has canceled student debt for an additional 150,000 borrowers, pushing the total forgiveness cost to $183 billion.
At a Glance
- Biden cancels student debt for 150,000 more borrowers in his final hours as president
- Total student debt forgiveness under Biden reaches $183 billion, affecting over 5 million Americans
- Education Department uses existing programs to bypass Supreme Court’s rejection of new forgiveness policy
- Critics argue Biden exploited a loophole, while supporters praise the relief for struggling borrowers
- Republicans plan to reverse Biden’s changes
Biden’s Final Push for Student Loan Forgiveness
In a last-minute move before leaving office, President Joe Biden has canceled student debt for an additional 150,000 borrowers. This action brings the total amount of student debt forgiven under his administration to a staggering $183 billion, affecting over 5 million Americans. The Education Department utilized existing programs, expanded by Biden, to execute this debt relief after the Supreme Court rejected a broader forgiveness policy.
The latest round of relief primarily comes through the borrower defense program, which cancels loans for students misled by their colleges. Additional relief was provided through programs for borrowers with disabilities and Public Service Loan Forgiveness (PSLF). By simplifying complex rules, the Biden administration increased eligibility for loan forgiveness without requiring congressional approval.
Biden administration provides student loan relief to 150,000 borrowers in final days https://t.co/D4Yc1bD5vl
— POLITICO (@politico) January 13, 2025
Controversy and Criticism
Critics argue that Biden used a loophole to bypass the Supreme Court’s ruling against his broader student debt relief plan. Republicans, including Rep. Virginia Foxx of North Carolina, have been vocal in their opposition to Biden’s expansion of borrower defense programs.
Republican states and members of Congress have consistently opposed Biden’s forgiveness efforts. Project 2025, a Heritage Foundation blueprint, suggests ending PSLF and narrowing borrower defense under the second Trump term. This indicates that future rollbacks of these programs are possible.
Impact and Future Implications
The Biden administration’s efforts have dramatically increased the number of borrowers benefiting from loan forgiveness programs. Before Biden, only 7,000 borrowers had loans canceled through PSLF; now, over 1 million public servants have benefited. This significant increase in debt relief has been praised by supporters as a necessary step to alleviate the financial burdens faced by students and recent graduates.