Biden Administration Forgives $39 Billion In Student Debt

The Biden administration on Friday announced it will forgive $39 billion in student debt for about 804,000 borrowers.

The debt relief is the result of changes to the student loan system’s income-driven repayment programs. The programs were built to forgive student debt after borrowers have been making payments for at least 20 or 25 years, depending on their loan. However, few borrowers have actually gotten their loans forgiven under that system.

“These fixes are part of the Department’s commitment to address historical failures in the administration of the Federal student loan program,” the Education Department said Friday in a press release.

Leftist lawmakers and activists have long called for broad student debt relief and have urged the Biden administration for years to grant it.

Critics argue that granting student debt relief is unfair to those who sacrificed to pay off their loans, especially since taxpayers ultimately pay for any government-funded debt relief.