President Joe Biden has announced another wave of student loan forgiveness, with just a month remaining before his presidency concludes.
On Friday, the administration confirmed the approval of $4.28 billion in student loan relief for 54,900 individuals under the Public Service Loan Forgiveness (PSLF) program. This initiative clears debts for government and nonprofit employees who make 10 years of qualifying payments.
This new relief stems from recent improvements to PSLF, including a temporary adjustment that allowed previously ineligible payments to count toward forgiveness. Although this adjustment expired in late 2022, its impact has been substantial for many borrowers.
“Four years ago, the Biden-Harris administration pledged to support America’s educators, healthcare workers, first responders, and other public servants by fixing the broken Public Service Loan Forgiveness program. Today, I’m proud to say we have delivered,” said Education Secretary Miguel Cardona.
With this latest measure, the total amount of student debt forgiven under Biden’s presidency now stands at approximately $180 billion, benefiting nearly 5 million Americans. Over $78 billion of this total was specifically allocated to PSLF participants.
Uncertainty Surrounds Additional Forgiveness Measures
As the administration transitions, it is unclear whether more debt-relief actions will be taken before January 20. This latest move concludes years of tumult for borrowers, including the Supreme Court overturning Biden’s initial plan for broad forgiveness last summer. A revised relief strategy is currently tied up in legal proceedings initiated by Republican-led states.
Moreover, 8 million borrowers participating in the SAVE plan — a newly introduced income-driven repayment option designed to lower monthly costs and expedite forgiveness timelines — face uncertainty as its legality awaits a court decision.
Trump Administration’s Likely Approach
Even if Biden’s relief plans survive ongoing legal challenges, the incoming Trump administration is unlikely to maintain similar efforts. During his first term, Trump proposed ending PSLF, though such action requires congressional approval. With Republican control of both the White House and Congress, these proposals could gain traction.
In reflecting on his administration’s accomplishments, Biden stated, “From the beginning, my mission has been to ensure higher education remains an opportunity, not an obstacle. Our initiatives have given millions the financial freedom to start businesses, plan for retirement, and pursue life goals that were previously hindered by student debt.”