Washington DC: US President Joe Biden unveiled a new initiative on Thursday, announcing the cancellation of $6 billion in student loans for 78,000 borrowers indulged in public services. This move brings the total student debt cancellation under his administration to nearly $150 billion.
Biden made the announcement as part of his ongoing efforts to address the burden of student debt in the United States. Last year, he pledged to explore alternative avenues for providing debt relief after his broader plan to cancel $430 billion in student loan debt was blocked by the Supreme Court in June.
The latest round of debt forgiveness targets public service workers, including teachers, nurses, and firefighters, who qualify under the Public Service Loan Forgiveness Program established in 2007. This program aims to alleviate student debt for Americans who choose careers in public service.
“These public service workers have dedicated their careers to serving their communities, but because of past administrative failures, never got the relief they were entitled to under the law,” Biden stated in a released statement.
According to the Federal Student Aid website, as of June 2023, approximately 43.4 million US student loan recipients collectively owed $1.63 trillion in outstanding loans. The staggering increase in higher education debt since the 2008 financial crisis has significantly impacted younger Americans, hindering their ability to invest in homes and other assets.
