With just weeks left in office, President Joe Biden is under mounting pressure from Democratic lawmakers and advocates to act on student loan forgiveness, particularly for defrauded borrowers and older Americans, CNBC reported.
The calls for action come as the clock ticks toward the inauguration of President-elect Donald Trump, whose administration is expected to oppose such initiatives.
On Wednesday, a group of lawmakers, including Sen. Bernie Sanders, I-Vt., and Sen. Ed Markey, D-Mass., sent a letter to Education Secretary Miguel Cardona urging immediate action to process an estimated 400,000 pending borrower defense applications. These applications come from borrowers who claim they were defrauded by their colleges or left stranded when their schools closed.
"These borrowers completed an onerous application to demonstrate that they were victims of fraud, but the Department has yet to act," the lawmakers wrote, highlighting the urgency of providing relief before the Biden administration leaves office.
The push builds on efforts that have already resulted in substantial loan forgiveness during Biden's tenure. The Department of Education has forgiven over $28 billion in student loan debt for more than 1.6 million borrowers misled by their schools or affected by closures.
However, advocates argue that many more borrowers are still awaiting justice.
"Under the previous Trump Administration, borrowers' applications were allowed to languish for years," the lawmakers wrote. "If their application was reviewed, borrowers often were denied and granted no relief."
Sen. Dick Durbin, D-Ill., reinforced this message on social media, spotlighting the challenges faced by borrowers trapped in predatory lending schemes.
"We must continue to process these claims before the next administration comes into office," Durbin urged in a post on X.
Biden's administration has also made sweeping reforms to the Public Service Loan Forgiveness program. In October, it approved $4.5 billion in additional relief for over 60,000 public service workers. The Department of Education said in a press release that these changes bring the total student loan forgiveness under the administration to more than $175 billion for 4.8 million borrowers, a significant leap from pre-Biden numbers.
Despite these milestones, advocates say there is still much to be done. "The Department needs to act for the remaining borrowers before it is too late," the lawmakers wrote.
Trump and Vice President-elect JD Vance have opposed widespread student loan forgiveness, signaling a potential rollback of relief initiatives under their administration.