Washington: US President Joe Biden on Thursday announced additional student debt relief for public sector employees — amounting to about $4.5 billion — with just over two weeks remaining until the presidential election.
The measure affects about 60,000 borrowers across the country, the White House said, praising efforts by Biden and Vice President Kamala Harris to improve loan forgiveness since taking office.
Harris is the Democratic Party’s nominee in the race for the White House next November, where she will compete against former Republican President Donald Trump.
The announcement comes as families feel the burden of higher living costs since the Covid-19 pandemic, with voters citing the economy as a top concern in opinion polls.
With the latest move, more than 1 million people have had their debts canceled under Public Service Loan Forgiveness, Biden said in a statement.
The program’s promise – to support teachers, nurses and others – included forgiving students of their debt after 10 years of public service and 10 years of payments.
“But for a long time, the government failed to fulfill its obligations, and only 7,000 people received amnesty,” Biden said.
“I will never stop working to make higher education accessible to everyone,” he added.
Biden has embarked on efforts to cancel student debt for millions of Americans, following Trump’s student loan repayment freeze during the coronavirus pandemic.
Americans have $1.6 trillion in student loans, and some end up paying them off over decades as they start their careers and families.