President Joe Biden's administration announced on Friday (December 20) the forgiveness of $4.28 billion in student loans for 55,000 borrowers under the Public Service Loan Forgiveness (PSLF) program. This initiative is part of Biden's ongoing efforts to alleviate student debt burdens. The PSLF program offers loan forgiveness to borrowers who have worked for a public service organization and made 120 qualifying payments.

The Department of Education has expanded the eligibility requirements for PSLF since 2021, resulting in over 1.06 million borrowers receiving forgiveness. The recent relief comes as Biden's Saving for a Valuable Education (SAVE) plan remains paused due to legal challenges. Borrowers in the SAVE plan are currently in forbearance and cannot make qualifying payments toward PSLF.

Biden's administration has faced obstacles in implementing broader debt relief measures but has managed to push through nearly $180 billion in student debt relief for 4.9 million borrowers. The latest round of forgiveness is part of a years-long effort to streamline debt relief programs.

“Four years ago, the Biden-Harris Administration made a pledge to America’s teachers, service members, nurses, first responders, and other public servants that we would fix the broken Public Service Loan Forgiveness Program, and I’m proud to say that we delivered,” said U.S. Secretary of Education Miguel Cardona.

The Education Department withdrew plans for broader debt relief, citing limited operational resources and the need to focus on helping at-risk borrowers return to repayment.

In a statement, Biden emphasized his commitment to making higher education accessible, stating, "From Day 1 of my administration, I promised to make sure that higher education is a ticket to the middle class, not a barrier to opportunity."

President-elect Donald Trump is unlikely to continue Biden's agenda on student loans once he takes office next month.

Woody & Company