Jan 19, 2024 - Politics & Policy

Biden forgives another $5 billion in student loans for 74K borrowers

People demonstrating for student debt relief outside of the Supreme Court in June 2023.

People demonstrating for student debt relief outside of the Supreme Court in June 2023. Photo: Tom Brenner for The Washington Post via Getty Images

The Biden administration on Friday announced another $5 billion in debt forgiveness for 74,000 student loan borrowers.

Why it matters: Although the Supreme Court blocked Biden's signature student loan forgiveness plan, his administration has found alternative ways to provide relief to more than 3.7 million people.

  • The batch of debt cancelation announced Friday stemmed, in part, from his administration's changes to the Public Service Loan Forgiveness (PSLF) program.
  • The majority of borrowers who will benefit from the latest round of forgiveness are teachers, nurses, firefighters and other public service professionals, per a White House release.
  • The remaining borrowers who will benefit have repaid their loans for at least 20 years but never got the relief they were entitled to under their income-driven repayment plans.

What they're saying: Biden said in a statement his administration would continue to find other ways to forgive loans held by "as many borrowers as possible."

  • "I won't back down from using every tool at our disposal to get student loan borrowers the relief they need to reach their dreams," he said.

The big picture: The price of higher education in the country has soared over the last few decades, according to the Education Data Initiative.

Go deeper: Millions of debtors have not yet made their first student loan repayment

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