President Biden’s final act in office cancels $183 billion in student loans, sparking debate on education finance reform.
At a Glance
- Biden cancels student debt for 150,000 more borrowers in his last hours as president
- Total student loan forgiveness under Biden reaches $183.6 billion
- Over 5 million Americans have had their student debt canceled during Biden’s term
- Critics argue Biden used loopholes to bypass Supreme Court ruling on loan forgiveness
- Republicans plan to reverse Biden’s changes
Biden’s Final Push for Student Loan Relief
In a last-minute decision before leaving office, President Joe Biden canceled student debt for an additional 150,000 borrowers. This move brings the total student loan forgiveness under his administration to a staggering $183.6 billion, affecting over 5 million Americans. The Education Department utilized existing programs expanded by Biden to implement this relief after the Supreme Court rejected a broader forgiveness policy.
The latest round of relief primarily comes through the borrower defense program, which cancels loans for students misled by their colleges. Additional relief was provided through programs for borrowers with disabilities and the Public Service Loan Forgiveness (PSLF) initiative. Biden’s administration simplified complex rules, increasing eligibility for loan forgiveness without requiring congressional approval.
Biden administration provides student loan relief to 150,000 borrowers in final days https://t.co/D4Yc1bD5vl
— POLITICO (@politico) January 13, 2025
Unprecedented Scale of Loan Forgiveness
The scale of Biden’s student loan forgiveness efforts is unprecedented in U.S. history. Before his presidency, only 7,000 borrowers had their loans canceled through the PSLF program. Now, over 1 million public servants have benefited from this initiative. This dramatic increase in loan forgiveness has been a cornerstone of Biden’s educational policy, despite facing significant opposition.
Critics argue that Biden’s administration has used loopholes to bypass the Supreme Court’s ruling against his broader student debt relief plan. This has led to intensified debates about the long-term economic sustainability and fairness of such extensive loan forgiveness policies.
Republican Opposition and Future Uncertainties
Republican states and members of Congress have strongly opposed Biden’s forgiveness efforts. Rep. Virginia Foxx, R-N.C., accused the administration of trying to “stretch every possible law” to implement these policies. There are concerns about potential rollbacks of these initiatives under a future Republican administration.
Project 2025, a Heritage Foundation blueprint, suggests ending PSLF and narrowing borrower defense under the second Trump term. Republicans have criticized Biden’s expansion of borrower defense and have expressed plans to reverse his changes.
Implications for Education Finance Reform
Biden’s aggressive approach to student loan forgiveness has set a new precedent in education finance reform. While it has provided relief to millions of Americans burdened with student debt, it has also raised questions about the sustainability of such policies and their impact on future generations of students. The debate over the appropriate balance between student debt relief and fiscal responsibility is likely to continue as a central issue in American politics and education policy.
