On Thursday, President Biden announced a new round of student loan forgiveness program, which will forgive $1.2 billion in student loans for 35,000 public servants. This announcement comes at a crucial moment in his re-election campaign, with many considering this as his latest effort to secure a second term.
Under the plan, the U.S. Department of Education will cancel student loans for 35,000 public servants participating in the government loan forgiveness program. These individuals include nurses, firefighters, teachers, who have been making repayments for 10 years while serving in public service.
Bloomberg reported on Thursday that Biden stated in a press release, “They will now have more breathing room to support themselves and their families.”
Education Secretary Miguel Cardona will announce the latest round of debt relief program at an event in South Carolina, alongside the state’s most senior Democratic congressman and long-time political ally of the president, Congressman Jim Clyburn.
Student loan forgiveness was a major promise in Biden’s 2020 presidential campaign, particularly resonating with groups such as African Americans and young people.
Last June, the Biden administration’s $430 billion student loan forgiveness program was rejected by the U.S. Supreme Court. The court’s ruling prevented over 40 million people from getting student loan relief. In response, Biden stated that he would explore different legal avenues to provide debt relief, citing the authority granted to him by the 1965 Higher Education Act to offer financial aid to college students.
According to statistics, the Department of Education has already forgiven $168.5 billion in student loan debt for 4.76 million Americans, mostly through administrative modifications to existing programs. It is reported that the Department of Education is working on finalizing rules for the next broader forgiveness attempt, expected to be released in the fall of this year. However, this program may still face legal challenges.