Just in time for the holidays, another 55,000 public service workers received news of a gift from President Joe Biden: canceled student debt.
“Because of our actions, millions of people across the country now have the breathing room to start businesses, save for retirement, and pursue life plans they had to put on hold because of the burden of student loan debt,” said the president.
Biden made the announcement Friday. He said this round of debt cancellation brings the total number of student loan borrowers who have received relief to 5 million.
While the Biden administration’s plans for our one-time student debt were blocked by the U.S. Supreme Court, it has still managed to provide to relief to some borrowers. As of this November, an estimated 42.8 million borrowers have student loan debt in the U.S.
This October, the U.S. District Court for the Eastern District of Missouri issued a preliminary injunction on the proposed student loan relief regulations, according to Federal Student Aid. With it, the U.S. Department of Education was prevented from implementing parts of the Saving on a Valuable Education (SAVE) Plan and some other plans.
Included in the most recent wave of debt relief announced this week are teachers, nurses, service members, law enforcement officials, and other public service workers, said Biden. He described them as people “who have dedicated their lives to giving back to their communities and who are finally earning the relief they are entitled to under the law.”
“Over the last four years, we have made significant progress for students and borrowers – including securing the largest increase to the maximum Pell Grant award in over a decade; holding institutions accountable for taking advantage of students; and fixing broken student loan programs such as Public Service Loan Forgiveness and Income Driven Repayment,” said Biden. He added that his administration believes that education should be a ticket to the middle class, not a barrier to opportunity.
Along with the conservative-leaning Supreme Court, President-elect Donald Trump has a different approach to student debt cancellation than the current administration.
“While Trump hasn't revealed any specific details for how he plans to tackle the growing mountain of student loan debt that Americans owe, currently around $1.74 trillion, he has vowed to eliminate the Department of Education, the loan holder of about 94% of that debt, and let the states run their education systems,” Audacy reported last month.