Biden Administration Withdraws Student Loan Forgiveness Plans Ahead of Transition

The U.S. Education Department shifts focus to borrower repayment support as legal and political challenges halt broader debt relief efforts.

The Biden administration has formally abandoned its latest student loan forgiveness proposals, which aimed to provide relief to tens of millions of borrowers.
The decision was driven by limited time and resources, as well as anticipated legal challenges and the upcoming transition to the Trump administration.
Education Secretary Miguel Cardona stated the department will prioritize helping at-risk borrowers return to repayment successfully instead of pursuing unfinished regulations.
Biden’s broader debt relief plans faced significant hurdles, including opposition from Republican-led states and a Supreme Court ruling blocking earlier efforts.
Despite the setback, the administration has forgiven $180 billion in student debt through existing programs and announced new relief for 55,000 borrowers under Public Service Loan Forgiveness.