President Joe Biden's tenure at the White House concludes with a decisive move on student debt cancellation.
According to Daily Mail, the Biden administration has orchestrated its final student debt relief initiative, canceling loans for an additional 150,000 borrowers and bringing the total debt forgiveness to $183.6 billion.
The Education Department executed this last-minute relief on Monday by leveraging existing programs that predated Biden's presidency. This strategic move comes in the wake of the Supreme Court's rejection of Biden's broader forgiveness plan, demonstrating the administration's determination to fulfill its campaign promises through alternative means.
The latest wave of debt cancellation primarily operates through the borrower defense program, established in 1994 to protect students from fraudulent educational institutions. This program remained largely dormant until the Obama administration addressed for-profit college scandals. The recent relief particularly benefits former students of defunct institutions owned by the Center for Excellence in Higher Education, including CollegeAmerica, Stevens-Henager College, and Independence University.
President Biden issued a statement regarding his administration's efforts, saying:
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.
The Public Service Loan Forgiveness program has undergone a significant transformation during Biden's tenure. Before his administration, only 7,000 borrowers received debt cancellation through this initiative, but regulatory changes have now enabled over 1 million public servants to achieve loan forgiveness.
The incoming Trump administration has indicated its intention to alter the trajectory of student loan relief programs. The Heritage Foundation's Project 2025, a blueprint for Trump's potential second term, proposes substantial changes to existing programs, including the elimination of Public Service Loan Forgiveness.
Republican opposition to Biden's debt relief measures has been consistent and vocal. Critics argue that loan cancellation unfairly burdens taxpayers who either never attended college or have already repaid their loans. Representative Virginia Foxx, R-N.C., has particularly criticized Biden's expansion of borrower defense.
The administration's regulatory modifications have sparked debate about executive authority limits. While Republicans have challenged Biden's broader forgiveness attempts, the smaller-scale relief programs have continued without significant legal opposition.
The impact of Biden's student loan policies extends beyond immediate financial relief. His administration's reforms have addressed long-standing issues in loan forgiveness programs, particularly concerning complex eligibility rules and servicer errors that previously resulted in a 99 percent rejection rate for public service loan forgiveness applications.
The transition to a Trump presidency could significantly impact these programs' future. Trump's previous stance on student loan forgiveness, describing it as "vile" and illegal, suggests a potential reversal of Biden's policies. The Republican-controlled Congress may support such changes, with leadership already signaling their intent to restrict loan forgiveness options.
Congressional scrutiny of these programs continues to intensify. Recent Republican reports have criticized Biden's interpretation and implementation of existing laws, suggesting that significant policy changes may occur after the presidential transition.
The Biden administration's final student loan relief action represents the culmination of a four-year effort to address the educational debt burden through existing federal programs. This last round of forgiveness, benefiting 150,000 borrowers, brings the total debt cancellation to $183.6 billion, marking a historic milestone in federal student loan policy. The future of student debt relief now hangs in the balance as the transition to the Trump administration approaches, with proposed changes threatening to fundamentally alter the accessibility and scope of loan forgiveness programs that have provided relief to millions of Americans.
