President Biden announces $5bn student debt forgiveness for 74,000 Americans

President Biden has revealed on Friday that his administration is forgiving $5 billion in student debt for an additional 74,000 borrowers. This development represents the latest phase of debt cancellation following the Supreme Court’s annulment of the president’s original student loan forgiveness program.

Of the beneficiaries, President Biden highlighted that nearly 44,000 are individuals in professions such as teaching, nursing, and firefighting, qualifying for forgiveness after a decade of dedicated public service. Additionally, approximately 30,000 recipients have diligently repaid their loans for over 20 years but have not received relief through income-based plans.

President Biden expressed his commitment to transforming the student loan system, emphasizing that higher education should be a source of opportunity and prosperity rather than an overwhelming burden of debt. In a statement, he declared, “From day one of my administration, I vowed to improve the student loan system so that a higher education provides Americans with the relief they need to reach their dreams.”

The latest round of student loan forgiveness brings the total number of Americans benefiting from debt erasure under the Biden administration to over 3.7 million, according to the president’s announcement. Since the beginning of his presidency, Biden has initiated various measures to address student debt, including the introduction of a new income-driven repayment plan and forgiveness for specific borrower categories, such as those in public service and individuals with disabilities. Earlier this month, the president disclosed that individuals with loans under $12,000, in repayment for a decade, would also see their remaining debt canceled, starting in February.

President Biden’s broader initiative, which aimed to provide relief to 40 million Americans with the potential for up to $20,000 in student debt forgiveness, faced a setback when the Supreme Court blocked the plan in June. The court’s ruling concluded that federal law did not authorize such widespread loan forgiveness. Despite this setback, the president remains resolute in utilizing every available tool to alleviate the financial burdens faced by student loan borrowers.