President Biden speaks at an event at the White House on October 16.
President Joe Biden's administration announced on October 17 that it had canceled $4.5 billion in student debt for more than 60,000 people, making him the president who canceled the most educational debt in US history.
The latest round of debt forgiveness is the result of the U.S. Department of Education's efforts to fix the troubled Public Service Loan Forgiveness (PSLF) program, according to CNBC.
President Biden said the new round of debt forgiveness brings the total number of public employees whose student debt has been forgiven to more than 1 million since he took office.
"Public service workers like teachers, nurses, firefighters are the foundation of our communities and our country. But for too long, our government has failed to deliver on its commitments," the White House chief said in a statement.
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The PSLF program, signed into law by former President George W. Bush in 2007, allows some government and nonprofit employees to have their federal student loans forgiven after 10 years. In 2013, the Consumer Financial Protection Bureau estimated that one-quarter of American workers could qualify.
However, the program has been plagued with problems. Often, borrowers believe they are on track to cancel their loans only to find they are ineligible for technical reasons, such as the type of loan or their repayment plan.
The U.S. Department of Education said that before President Biden took office, only 7,000 people had received loan forgiveness under PSLF, adding that the program’s denial rate was as high as 98% in some years.
Under Mr. Biden, the US Department of Education has loosened program requirements and reformed how the program is administered.
Borrowers who qualify for this round of forgiveness will learn about their forgiven debt in the coming weeks. The average student loan balance forgiven under PSLF is about $70,000, according to a preliminary estimate by higher education expert Mark Kantowitz.
According to CNN, the latest debt forgiveness brings the total debt forgiven to more than $175 billion for nearly 5 million people since Mr. Biden took office. This figure is equivalent to 11% of all outstanding federal student loan debt.
Source: https://thanhnien.vn/tong-thong-biden-xoa-45-ti-usd-no-sinh-vien-lap-ky-luc-moi-185241017164145604.htm
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