President Joe Biden announced the cancellation of student loans for 150,000 borrowers on Monday, just one week before the upcoming transition to a Trump administration. This latest action brings the total number of borrowers receiving relief under Biden’s tenure to over 5 million, according to a White House statement.
The new cancellations include 85,000 borrowers defrauded by their schools, 61,000 borrowers with total and permanent disabilities, and 6,100 public service workers. Biden highlighted his administration’s record on debt relief, boasting of more loan forgiveness than any prior administration. However, critics argue the program unfairly penalizes working- and middle-class Americans who never attended college or already repaid their loans in full.
Since the Supreme Court struck down Biden’s broader student loan forgiveness program, the administration has announced alternative pathways to provide relief. Biden’s August 2022 announcement of sweeping student debt forgiveness, widely seen as a bid to secure younger voters ahead of the midterms, faced immediate legal and political pushback. Despite these efforts, the Supreme Court deemed the initiative unconstitutional, blocking its implementation.
President-elect Donald Trump’s transition team has indicated plans to dismantle Biden’s student loan forgiveness programs. Sources suggest the incoming administration will act swiftly to unwind Biden’s policies, citing the financial burden on taxpayers and concerns about executive overreach.
Biden’s student loan policies, once touted as a key promise to younger voters, have faced criticism from both fiscal conservatives and those who believe the relief is insufficient or mismanaged. Trump’s administration appears poised to emp
