WASHINGTON: US President Joe Biden announced on Thursday the approval of $4.5 billion in student debt relief for public servants, just over two weeks before the upcoming presidential election.
The measure will affect approximately 60,000 borrowers across the country, according to the White House. This initiative adds to Biden and Vice President Kamala Harris’s ongoing efforts to ease the student loan burden since taking office.
With the economy being a key issue for voters, the announcement comes as many households continue to struggle with rising living costs in the aftermath of the Covid-19 pandemic.
In a statement, Biden said that this latest action brings the total number of people who have had their debt cancelled under the Public Service Loan Forgiveness (PSLF) program to over one million.
The PSLF program, which benefits public servants such as teachers and nurses, promises student debt forgiveness after 10 years of public service and consistent loan payments.
“For too long, the government failed to live up to its commitments, and only 7,000 people had ever received forgiveness,” Biden said. “I will never stop working to make higher education affordable.”
Vice President Kamala Harris, the Democratic nominee in the upcoming election, said that higher education should provide “a pathway to economic opportunity — not a lifetime of debt,” and vowed to continue working to lower the cost of education and alleviate student debt.
The Biden administration has prioritized student debt relief, building on a freeze on loan payments instituted by former president Donald Trump during the pandemic.
With Americans collectively holding $1.6 trillion in student debt, many find themselves repaying loans for decades, delaying financial milestones such as starting families or buying homes.
