The White House announced Thursday that student loans for 77,700 public service workers have been cancelled.
WASHINGTON (NEXSTAR) – The White House announced Thursday that student loans for 77,700 public service workers have been cancelled.
Deputy Director of the National Economic Council Jon Donenberg says that the Biden administration wants to do even more.
“We're announcing another 78,000 today and we're going to keep going,” he said. “The president has been very clear on what his goal is. He is not taking his foot off the gas.”
Public service workers will receive an email from the president thanking them for their service and informing them about their loan forgiveness. The emails will start being sent out Thursday and will continue in the coming weeks.
Emails will also be sent to public service workers who have made their payments and are 1 to 2 years away from eligibility, instructing them to continue payments to ensure forgiveness.
In a 2023 U.S. Supreme Court ruling, the original $400 billion student loan forgiveness plan that President Biden proposed was struck down. The court ruled that the administration had overstepped its authority.
Donenberg said that President Biden has directed the administration to do everything that they can to help as many people, as quickly as possible.
“We have to do that within the constraints of what we are allowed to do under the law,” he clarified. “But within those constraints, we are going to be very aggressive.”
Critics of loan forgiveness have framed the moves as unfair to borrowers who have paid off their loans already. Donenberg, however, views this forgiveness as crisis relief to 40 million Americans and a potential boost to the economy.
“We know that if you're crushed under a student loan bill, you're less likely to take out a loan to start a small business… We have less building of wealth and value for middle class families than we otherwise would have,” he said.
