Biden forgives $4.28bn in student loans in final month

U.S. President Joe Biden announced on Friday the cancellation of $4.28 billion in student loan debt for 55,000 Americans.

The latest round of relief targets “teachers, nurses, service members, law enforcement officials, and other public service workers who have dedicated their lives to giving back to their communities,” Biden said in a statement released by the White House.

This effort adds to a sweeping initiative that has provided relief to nearly five million borrowers during Biden’s tenure. “From Day One of my administration, I promised to make sure that higher education is a ticket to the middle class, not a barrier to opportunity,” the outgoing president said, reiterating his commitment to making college more affordable for Americans.

Education Secretary Miguel Cardona underscored the significance of this initiative, stating, “Friday’s approval brings the total amount secured during Biden’s four years in office to nearly $180 billion in life-changing student debt relief for nearly five million borrowers.”

Biden’s administration gained momentum in 2022 with a historic loan forgiveness program designed to cancel up to $20,000 for certain borrowers and $10,000 for most others. However, the program faced a significant obstacle in 2023 when the Supreme Court, dominated by conservative justices, struck it down. In its ruling, the court argued that “the president had overstepped his powers” in attempting to implement such a sweeping measure without congressional approval.

Student debt remains a pressing issue in the United States, where annual college costs range from $10,000 to $70,000. A Pew Research Center report from 2023 revealed that one in four Americans under 40 carry student loan debt. “The median amount owed is between $20,000 and $25,000, depending on education level,” the report stated, highlighting the financial challenges faced by millions of borrowers.

Despite judicial hurdles, Biden’s final push to alleviate student debt showcases his administration’s ambition to ease the burden of higher education costs. “We’ve made tremendous progress, but there’s still work to do,” Biden said, reflecting on the challenges and achievements of his presidency.