Mov brings total student loan forgiveness during Joe Biden's term as President to $180bn, the Education Department says.
The administration of US President Joe Biden is canceling student loans for another 55,000 people in the United States, totaling $4.2bn in debt forgiveness just weeks before his term in office ends.
The White House said in a words Friday that the move would affect public employees, including teachers, nurses and law enforcement officers.
It brings the total number of Americans approved for student loan repayment during Biden's presidency to nearly five million.
“Thanks to our actions, millions of people across the country now have the flexibility to start businesses, save for retirement, and pursue life plans that they had to put on hold because of student loan debt,” the White House said.
In other words, the Department of Education said the Biden administration will forgive about $180bn in student loans.
Friday's announcement is expected to be the final phase of public debt relief before Biden leaves office in January.
The Democratic president revealed a amnesty program in 2022 to cancel hundreds of billions of dollars in student loans.
The plan would have made some borrowers eligible for $20,000 in cancellations while most were eligible for $10,000.
But conservative – the majority Supreme Court he interrupted the process last year, saying that because of the large amount of money, the president exceeded his powers.
Biden promised to fight this decision and, since then, has been focusing on expanding credit support through targeted programs.
Under Biden, the Department of Education loosened the rules for personal loan forgiveness, which previously had a 99 percent denial rate amid burdensome regulations and widespread confusion over eligibility requirements.
In the US, colleges can cost anywhere between $10,000 and $70,000 a year, leaving some graduates with significant debt once they enter the workforce.
According to the Pew Research Center, one in four American adults under the age of 40 has student loan debt while the median income is expected to be $20,000 to $25,000 in 2023, depending on education.