WASHINGTON (AP) — The Biden administration is canceling federal student loans for another 55,000 workers through an existing program known as Public Service Loan Forgiveness.
The Department of Education’s announcement Friday targets teachers, nurses, military personnel, law enforcement officers and others who qualify through the program, which promises to erase loans after 10 years of work in government or nonprofit organizations.
The $4.28 billion in aid is expected to be the last round of government loan forgiveness before President Joe Biden leaves office in January. After falling short of his promise of widespread loan forgiveness, Biden has instead focused on expanding loan relief through programs established before his presidency.
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Under Biden, the Department of Education relaxed rules for public loan forgiveness, which previously had a 99% denial rate, amid burdensome rules and widespread confusion over eligibility requirements.
With the latest round of aid, Biden has now canceled an unprecedented $180 billion in federal student loans through existing programs, covering 4.9 million Americans. That includes $78 billion for approximately 1 million borrowers through PSLF.
“From day one of my administration, I have pledged to ensure that higher education is a ticket to the middle class, not a barrier to opportunity,” Biden said in a statement. “Thanks to our actions, millions of people across the country now have the breathing room to start a business, save for retirement and pursue life plans they had to postpone because of the burden of student loan debt.”
Yet the Democrat has failed to achieve his goal of providing widespread relief to millions of other Americans. Biden’s first attempt at mass cancellation was blocked by the Supreme Court, and his second effort remains mired in a legal battle from Republican states.
In October, he proposed another rule that would cancel loans for people facing various types of financial problems, although it is unlikely to come into effect.
Trump has no detailed plans for student loans for his second term, but during the campaign he called Biden’s cancellation plans illegal and “despicable.” Republicans in Congress have criticized Biden for his cancellation work, saying it unfairly shifts the burden to taxpayers who haven’t gone to college or already repaid their loans.
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