Biden announces $4.5 billion in student debt forgiveness

Photo: Joe Biden

U.S. President Joe Biden has announced an additional $4.5 billion in student debt forgiveness for more than 60,000 borrowers through the Public Service Loan Forgiveness (PSLF) program, which is designed for public service workers. Information about this appeared on Thursday, October 17, on the White House website.

In total, during the administration of President Biden and Vice President Kamala Harris, the number of government employees who have had their student loans forgiven has exceeded 1 million people. The presidential administration has approved $175 billion in debt relief for nearly 5 million Americans, each of whom was approved to have their student debt forgiven in the amount of about $35,000, on average, the White House said in a statement.

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As the statement said, today's debt forgiveness announcement is part of a broader effort by the presidential administration to reduce the student debt burden and ensure that loans do not become an obstacle to educational and economic opportunity for students and their families.

The previous round of debt forgiveness took place in April of this year. Then President Biden announced $7.4 billion in loan forgiveness for another 277,000 U.S. residents.

The total amount of loans taken out by Americans for educational purposes was $1.7 trillion at the end of June 2023. Some of the borrowers have been paying off their student loans for decades.

Prepared by: Sergey Daga