President Joe Biden has announced he is cancelling nearly $6bn (£4.7bn) in student debt for 78,000 public service workers.
Teachers, nurses and firefighters are among those eligible for the relief, the White House said.
To date, Mr Biden has cancelled $143bn in debt for nearly 4 million people.
Republicans have slammed the Democratic president’s debt forgiveness, saying US taxpayers ultimately foot the bill and it stokes rising university fees.
In this latest move, 78,000 public service workers will see an average of about $77,000 of student loan debt cancelled.
“These public service workers have dedicated their careers to serving their communities, but because of past administrative failures, never got the relief they were entitled to under the law,” Mr Biden said in a statement.
Around 43 million people in the US have student loan debt, with federal loans making up the vast majority.
Since the Biden administration’s wider plan for student debt relief was struck down by the Supreme Court last year, the president has been trying to use old and new loan repayment plans to help relieve debt.
The White House’s initial plan would have forgiven up to $20,000 in debt per person, which would amount to more than $400bn in student loans.
The US Supreme Court ruled that Mr Biden did not have the authority to cancel that debt without congressional approval, however.
The issue has galvanised young voters in particular, a key bloc Mr Biden is trying to win over before he faces former President Donald Trump in the 2024 presidential election.
Many young Americans were furious after the Supreme Court ruling and criticised the Biden administration for not doing more to address student loans.
Since then, the White House has been eager to highlight that Mr Biden has cancelled more student debt than any other president and has found further avenues to nix more.
The latest debt relief plan applies to government and nonprofit organisation workers in the Public Service Loan Forgiveness program. The plan allows some of these full-time workers to see their debt cancelled after 120 monthly payments.
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