Biden’s Student Loan Forgiveness Legacy: $188.8 Billion in Relief for 5.3 Million Borrowers
By Jake Beardslee ·
January 16, 2025
President Joe Biden has concluded his administration's efforts on student-loan forgiveness with a final announcement delivering $600 million in debt relief. This action benefits 4,550 borrowers on income-driven repayment plans and 4,100 individuals who were defrauded by institutions such as DeVry University. The White House / Wikimedia
This marks the final chapter in Biden’s comprehensive approach to addressing the student loan crisis, a promise he made at the start of his presidency. Education Secretary Miguel Cardona reflected on the administration’s accomplishments, stating, "We rolled up our sleeves and, together, we fixed existing programs that had failed to deliver the relief they promised, took bold action on behalf of borrowers who had been cheated by their institutions, and brought financial breathing room to hardworking Americans—including public servants and borrowers with disabilities." United States Department of Education / Wikimedia
Since taking office, the Biden administration has implemented a series of measures to alleviate the burden of student debt, resulting in a total of $188.8 billion in forgiveness for approximately 5.3 million borrowers. In just the past week, the administration announced $4.5 billion in relief for borrowers defrauded by predatory institutions and $4.2 billion for government and nonprofit workers, as well as individuals with total and permanent disabilities. These initiatives aimed to rectify decades of unfulfilled promises by the federal government to assist borrowers who committed to public service or were misled by their educational institutions. The White House / Wikimedia
Thursday’s announcement also included account adjustments for income-driven repayment plans. The Education Department ensured that borrowers' progress toward forgiveness was accurately recorded, addressing longstanding concerns about mismanagement. Officials noted that borrowers who recently transitioned to new loan servicers might receive additional payment credits in the coming weeks. Fry1989 / Wikimedia
Despite these sweeping reforms, the future of student-loan forgiveness remains uncertain. President-elect Donald Trump has openly criticized Biden’s efforts and is unlikely to pursue similar initiatives. Borrowers in Biden’s SAVE plan, introduced in 2023 to make repayment more affordable, continue to await a final court ruling and remain in forbearance for now. Daniel Torok / Wikimedia
Under Secretary of Education James Kvaal highlighted the significance of these actions, stating, "For decades, the federal government promised to help people who couldn't afford their student loans because they were in public service, had disabilities, were cheated by their college, or who had completed decades of payments. But it rarely kept those promises until now." United States Department of Education / Wikimedia
As President Biden’s term nears its end, his administration’s student loan relief efforts mark a significant policy moment for millions of Americans. However, the absence of bipartisan support for these measures raises questions about their durability and the future of similar initiatives under the incoming administration. Chairman of the Joint Chiefs of Staff from Washington D.C, United States / Wikimedia
