Janice R. Andrews
As President Biden’s term nears its conclusion, the administration has announced an additional $4.28 billion in student loan forgiveness for nearly 55,000 public service workers. This latest action brings the total student debt relief under Biden to nearly $180 billion, benefiting 4.9 million borrowers.
Overhaul of Public Service Loan Forgiveness
The new debt cancellation is part of ongoing reforms to the Public Service Loan Forgiveness (PSLF) program, which has been significantly improved since Biden took office. Previously, only 7,000 borrowers qualified for PSLF, which requires 120 qualifying payments for debt cancellation. Thanks to changes in the program’s management and broader eligibility, the administration has now forgiven $78 billion for over one million public servants, including teachers, healthcare workers, and first responders.
“Four years ago, the Biden-Harris Administration promised to fix the broken PSLF program, and I’m proud to say we’ve delivered,” stated Education Secretary Miguel Cardona.
These adjustments have made it easier for borrowers to track their debt forgiveness progress, providing greater transparency and access to PSLF benefits. However, as Biden’s presidency winds down, both critics and supporters of the initiative have voiced their concerns.
Mixed Reactions to Biden’s Debt Relief
Opponents of Biden’s student loan policies argue that debt cancellation is a financial burden on taxpayers, shifting the cost of loans from borrowers to the public. Critics claim that the debt relief measures unfairly benefit borrowers at the expense of others.
On the other hand, advocates for student loan reform have expressed frustration that more was not accomplished due to legal challenges. “We are deeply disappointed that the actions of right-wing attorneys general have blocked tens of millions of borrowers from accessing critical debt relief,” said Persis Yu from the Student Borrower Protection Center.
Expanding Debt Relief
In addition to PSLF, the Biden administration has provided substantial debt relief through Income-Driven Repayment (IDR) plans. Over $56 billion has been forgiven for 1.4 million borrowers through IDR. Other initiatives have focused on borrowers with specific needs:
- $28.7 billion canceled for 1.6 million borrowers defrauded by schools.
- $16.2 billion erased for more than 500,000 borrowers with permanent disabilities.
Despite these accomplishments, some of Biden’s more ambitious plans remain in limbo.
Unfinished Plans for Broader Relief
One of Biden’s key proposals to forgive up to $20,000 per borrower was struck down by the U.S. Supreme Court in June 2023. Following that setback, the administration introduced an alternative plan, but legal challenges have prevented it from moving forward.
The proposed regulations were intended to:
- Eliminate interest for over 20 million borrowers who owe more than their original loan amount.
- Shorten the time required for loan forgiveness.
However, these plans were recently withdrawn, raising concerns that they may be delayed or repurposed under a future Trump administration.
Uncertainty Surrounding the SAVE Plan
Another plan, the Saving on Valuable Education (SAVE) initiative, aimed to help borrowers by:
- Reducing monthly payments based on income.
- Stopping interest from accruing.
- Offering forgiveness after 10 years instead of the usual 20-25 years for some borrowers.
However, the SAVE plan has also been temporarily blocked by Republican challenges in the courts. If the plan is not implemented, borrowers could face higher costs once payments resume.
A Critical Final Push
With just one month remaining in Biden’s presidency, the administration is making a final push to fulfill its promises of student loan relief. However, ongoing legal battles demonstrate the contentious nature of these debt cancellation efforts.
As Biden prepares to leave office, the future of his student loan policies will depend on the next administration’s stance. While millions have already benefited from Biden’s initiatives, many borrowers are left wondering whether broader relief will come to fruition.
“President Biden’s proposals would have freed millions from the burden of student debt,” Yu emphasized.
Legacy of Action and Controversy
Biden’s approach to student loan forgiveness represents one of the most significant interventions in U.S. higher education financing in recent history. While widely praised for its scale and ambition, the ongoing legal disputes highlight the divisive nature of the debt relief policies.
As the political landscape shifts, both borrowers and critics will be watching closely to see if Biden’s student loan legacy will endure or be overturned.
