The Biden-Harris administration has spent the last few years keeping a bold campaign promise—alleviating the weight of student loan debt for millions of Americans. While legal battles have plagued their broader plans for forgiveness, the administration has made its final push to forgive student loans for targeted groups of borrowers.
Here’s everything you need to know about Biden’s final forgiveness push.
What Was Biden’s Final Forgiveness Initiative Focused On?
The administration doubled down on targeted forgiveness programs rather than the broad cancellation many hoped for. The most recent forgiveness approvals center on three key groups:
- Students Defrauded by Colleges
Borrowers who attended fraudulent colleges are a top priority under Borrower Defense to Repayment. Students defrauded by schools misrepresenting their job placement rates or program quality are seeing relief.
In the most recent round of student loan discharges, included certain students who attended Ashford University, schools owned by the Center for Excellence in Higher Education, those who attended any location of Drake College of Business, and those who attended the Criminal Justice Program at Lincoln Technical Institute.
- Public Service Loan Forgiveness (PSLF)
PSLF received additional approvals under Biden’s final push. This program is designed for borrowers in public service fields—such as education, healthcare, and government—who commit to 10 years of qualifying payments on their eligible loans.
Throughout his administration, President Biden created waivers and other initiatives to make those who should qualify, qualify for the forgiveness opportunity. At the start of his presidency, PSLF which was established in 2010, only had 2% of application received approved. Now days away from the end of his term, over 1 million borrowers have qualified for PSLF and over $78 billion in student loan debt has been forgiven.
- Borrowers with Disabilities
Another key focus has been addressing loans held by borrowers with total and permanent disabilities. Total and Permanent Disability (TPD) has been an opportunity for decades, however, throughout the past few years the process has been simplified quite a bit for borrowers. This is a major stride in reducing financial stress for individuals unable to work due to disabilities.
Why Did Biden Abandon the Plan for Broad Forgiveness?
The promise of broad forgiveness has been central to Biden’s platform, but recent developments have forced his administration to pivot strategically. Facing legal challenges, including lawsuits targeting the constitutionality of blanket cancellations, the White House made a calculated decision to withdraw its broader forgiveness plan.
Based on legal trends, the administration was poised to lose its case for mass cancellation in court. Rather than letting the case continue into the Trump administration, where it would likely be abandoned, Biden’s team moved to refocus their efforts where immediate impact was possible.
Withdrawal became a tactical move to prevent the Trump administration from gaining the upper hand on regulatory processes. An overly restrictive interpretation of regulations or executive actions could make it more difficult for future efforts of student loan forgiveness opportunities for students.
What Can Borrowers Expect Under a Trump Administration?
With the imminent inauguration of the Trump administration, one of the biggest questions on the minds of borrowers is. There’s concern that forgiveness programs like Borrower Defense and PSLF could be restricted, either through reduced funding or narrower eligibility criteria.
Most new administrations lay out their blueprint early. Borrowers should keep an eye on budget proposals, Department of Education appointments, and executive orders in the months following inauguration to understand Trump’s policy direction.
Until more clarity emerges, patience will be key for those impacted by federal student loan policies.