Biden Administration Withdraws Two Major Student Loan Forgiveness Plans

The decision affects over 30 million borrowers and signals a shift in student debt relief efforts as the administration prepares to leave office.

The Biden administration has withdrawn two proposed student loan forgiveness plans, citing operational challenges and legal barriers.
The plans aimed to provide relief to borrowers facing financial hardship and those with decades of repayment, potentially benefiting over 30 million people.
Officials suggest the decision was influenced by the incoming Trump administration and ongoing legal battles that could have hindered implementation.
Borrower advocates expressed disappointment, while the administration highlighted its record of $180 billion in targeted debt relief during Biden's tenure.
Existing programs, such as Public Service Loan Forgiveness and income-driven repayment options, remain available, though their future under the next administration is uncertain.