President Biden revealed on Thursday that $5.8 billion in student loans would be forgiven for 78,000 borrowers employed in the public sector. This move brings the total student debt write-offs by the Biden administration to $143.6 billion.
Last year, Biden had to pivot his debt relief strategy after the Supreme Court blocked his plan to cancel $430 billion in student loan debt, deeming it unconstitutional. Critics, particularly Republicans, have raised concerns about the burden of canceled student debt falling on taxpayers.
The latest initiative targets public service workers such as teachers, nurses, and firefighters under the Public Service Loan Forgiveness Program (PSLF) established in 2007. This program, signed into law by President George W. Bush, aims to alleviate student debt for individuals in public service and nonprofit roles.
Biden emphasized that the debt relief is crucial for borrowers whose financial obligations have hindered their opportunities. The administration's efforts have resulted in over 870,000 public service workers benefiting from student debt cancellation, a significant increase compared to previous administrations.
As of June 2023, approximately 43.4 million U.S. student loan recipients collectively owed $1.63 trillion in outstanding loans, reflecting a threefold increase since the 2008 financial crisis.
Starting next week, eligible borrowers will receive emails from President Biden congratulating them on their debt relief. Additionally, nearly 380,000 public service workers nearing debt forgiveness through PSLF will receive direct emails from the president, acknowledging their service and informing them of their impending debt cancellation within one to two years.
This announcement comes as President Biden seeks re-election and against the backdrop of a national debt exceeding $34.5 trillion, a stark contrast to the $907 billion debt level four decades ago.
