Biden Forgives $1.2 Billion in Student Loans in Latest Relief
(Bloomberg) -- President Joe Biden canceled an additional $1.2 billion in student debt for public servants on Thursday, the latest effort to provide loan relief and deliver on one of his signature initiatives in the midst of a reelection campaign.
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The assistance will affect 35,000 public service workers enrolled in the government’s loan forgiveness program, including nurses, firefighters and teachers. The individuals received waivers or were affected by regulatory changes that gave them more credit toward the system’s decade-long payment requirement.
“They will now have more breathing room to support themselves and their families,” Biden said in a statement.
Education Secretary Miguel Cardona will announce the latest round of debt forgiveness at an event in South Carolina, alongside that state’s most senior Democratic lawmaker, Representative Jim Clyburn, a longtime political ally of the president.
Student-debt relief was one of the key promises of Biden’s 2020 presidential campaign and carries weight with groups that are critical to his electoral coalition, including Black voters and young people.
The president’s ambitious $400 billion plan for broad student debt relief was struck down by the US Supreme Court and despite the his efforts to act on his own, he has struggled to overcome frustration regarding the extent of the administration’s progress.
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The Education Department has now forgiven $168.5 billion in student debt for 4.76 million Americans, mostly through administrative changes to existing programs. The agency is finalizing rules for another attempt at broader relief expected to be released this fall. It’s also likely to face legal challenges.
The latest relief also comes at a critical time in Biden’s campaign, with the president facing a growing drumbeat of calls for him to end his reelection bid amid concerns about his age and mental acuity. On Wednesday, the White House announced he had tested positive for the coronavirus forcing him off the campaign trail and adding to the scrutiny over his health.
Despite the program being in existence since 2007, only 7,000 public servants received debt forgiveness before to the Biden administration because of mismanagement.
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