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Last Monday, the Department of Education canceled student loans for 150,000 borrowers. The cancellations target people who attended schools that defrauded students, people with permanent disabilities, and public service workers.
With a few weeks left in his term, President Joe Biden confirmed that 5 million have been canceled by his istration.
Incidentally, the Biden istration has announced 28 student debt forgiveness plans totaling $183.6 billion, with the most recent being $4.2 billion. They have faced legal opposition from Republicans and the courts, as this was a campaign promise in 2020.
"Four years ago, President Biden promised to fix a broken student loan system. Today, life-changing student debt relief is possible for more than five million borrowers-more than any other istration in history," said Miguel Cardona, U.S. Secretary of Education.
President Joe Biden set the record straight with his statement: "My istration has taken historic action to reduce the burden of student debt, hold bad actors able, and fight for students across the country."
What will happen to this program with the arrival of Donald Trump?
It's the million-dollar question, because this barrage of cancellations may slow down when Donald Trump sits on the throne. Trump hasn't given specifics on what he thinks about student loans, but he has previously said that forgiving debt is trash and not legal. Republicans have railed against what Biden wants to do, arguing that those who pay taxes and never went to college or paid off their loans are the ones who end up paying.
Trump wanted to eliminate PSLF during his first term, but Congress said no. The Heritage Foundation's Project 2025, for a second round of Trump, says they will end PSLF, tighten the screws on debtors, and make payment plans less cool than they are now. In this case, the Republicans will the president-elect for the rest of 2025.