By Ken Afor
President of the United States of America, Joe Biden, on Thursday, announced that $6 billion in student loans for 78,000 borrowers would be cancelled, marking a significant step in his administration’s efforts to address student debt.
This move brings the total student debt cancellation under Biden’s administration to nearly $150 billion.
It would be recalled that last year, Biden, had pledged to explore alternative avenues for providing debt relief after the Supreme Court blocked his broader plan to cancel $430 billion in student loan debt in June of last year.
The beneficiaries of this latest round of loan forgiveness include public service workers such as teachers, nurses, and firefighters.
These individuals qualify under the Public Service Loan Forgiveness Program, which was established in 2007 to alleviate student debt burdens for Americans who pursue careers in public service.
“These public service workers have dedicated their careers to serving their communities, but because of past administrative failures, never got the relief they were entitled to under the law,” Biden said in a statement.
As of June 2023, approximately 43.4 million US student loan recipients were burdened with $1.63 trillion in outstanding loans, as noted by the Federal Student Aid website.
Notably, higher education debt has tripled since the 2008 financial crisis.
The substantial interest rates and significant payments associated with these loans have resulted in younger Americans facing challenges in purchasing homes or making other investments.
Democrats have advocated for US government’s forgiveness of student loans for years, citing the need to alleviate financial burdens on borrowers. However, Republicans have largely opposed such measures, as reported by Reuters.
“I won’t back down from using every tool at my disposal to deliver student debt relief to more Americans, and build an economy from the middle out and bottom up,” Biden said.
According to a White House official, Biden’s recent action brings the total amount of debt cancellation under his administration to $144 billion, benefiting nearly 4 million Americans.
