
President Biden’s final act on student loans sparks controversy as total forgiveness hits $183 billion.
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
- Critics accuse Biden of using loopholes to bypass Supreme Court ruling
- Republicans plan to reverse Biden’s student loan policies
Biden’s Final Push for Student Loan Forgiveness
In a move that has intensified the debate over student loan forgiveness, President Joe Biden announced the cancellation of student debt for an additional 150,000 borrowers during his final hours in the White House. This last-minute action brings the total amount of student loan debt canceled under Biden’s administration to a staggering $183.6 billion, affecting over 5 million Americans.
The Education Department utilized existing programs, expanded by Biden, to execute this latest round of loan cancellations. These programs include the borrower defense initiative, which forgives loans for students misled by their colleges, as well as relief for borrowers with disabilities and those eligible for Public Service Loan Forgiveness (PSLF).
Biden administration provides student loan relief to 150,000 borrowers in final days https://t.co/D4Yc1bD5vl
— POLITICO (@politico) January 13, 2025
Bypassing the Supreme Court
Critics argue that Biden’s administration has exploited loopholes to circumvent a Supreme Court ruling that blocked his broader student debt relief plan. By focusing on existing mechanisms and simplifying complex rules, the administration has managed to increase eligibility for loan forgiveness without requiring congressional approval. “My Administration has taken historic action to reduce the burden of student debt, hold bad actors accountable, and fight on behalf of students across the country.” stated Biden during the briefing.
The impact of these efforts is significant. Before Biden took office, only 7,000 borrowers had their loans canceled through the Public Service Loan Forgiveness program. Now, over 1 million public servants have benefited from the expanded eligibility criteria.
Republican Opposition and Potential Rollbacks
Republican states and members of Congress have consistently opposed Biden’s forgiveness efforts. Rep. Virginia Foxx, R-N.C., accused the administration of trying to “stretch every possible law” to implement its student loan policies. With the change in administration imminent, there are concerns about potential rollbacks of these forgiveness programs.
The Heritage Foundation’s Project 2025, suggests ending the Public Service Loan Forgiveness program and narrowing the scope of borrower defense. Republicans have criticized Biden’s expansion of these programs and have expressed intentions to reverse his changes.
The Future of Student Loan Forgiveness
The long-term implications of Biden’s actions remain uncertain. While millions of borrowers have found relief under his administration’s policies, the political landscape suggests that these changes may not be permanent. The ongoing controversy surrounding student loan forgiveness is likely to remain a significant issue.
With the total cost of forgiveness reaching $183 billion, questions about the economic impact and fairness of these policies continue to divide public opinion.