Biden cancels another $4.2 billion in US student loans before leaving office | Joe Biden News

The Education Department says the move brings the total student loan forgiveness during Joe Biden’s term as president to $180 billion.

The administration of US President Joe Biden is Cancellation of student loans For another 55,000 people in the United States, the equivalent of $4.2 billion in debt just weeks before his term in office expires.

The White House said in a statement on Friday that the move would affect public service workers, including teachers, nurses and law enforcement officers.

This brings the total number of Americans approved for student debt relief during Biden’s term as president to nearly five million.

“Because of our actions, millions of people across the country now have breathing room to start businesses, save for retirement, and pursue life plans they had to postpone due to the burden of student loan debt,” the White House said.

In a separate statement, the Education Department said the Biden administration has forgiven a total of about $180 billion in student loans.

Friday’s announcement is expected to be the final round of public service loan forgiveness before Biden leaves office in January.

The Democratic President had unveiled Historical Forgiveness Program in 2022 to cancel hundreds of billions of dollars in student debt.

The plan would have made some borrowers eligible for $20,000 in cancellations while the vast majority were eligible for $10,000.

But the majority are conservative supreme court It canceled the program last year, saying that given the large amount, the president had exceeded his powers.

Biden promised to fight The ruling has since focused on expanding loan relief through targeted programs.

Under Biden, the Education Department has relaxed rules for public service loan forgiveness, which previously had a 99 percent denial rate amid burdensome rules and widespread confusion over eligibility requirements.

In the United States, college often costs between $10,000 and $70,000 per year, leaving some graduates with massive debt when they enter the workforce.

According to the Pew Research Center, one in four American adults under the age of 40 have student loan debt, with the average amount owed ranging from $20,000 to $25,000 in 2023, and varying by education level.