President Joe Biden recently announced a significant milestone in the student loan cancellation program for public workers. The program, known as Public Service Loan Forgiveness, has provided relief to over 1 million Americans, a significant increase from the mere 7,000 who were approved before the Biden administration revamped the program two years ago.
The Public Service Loan Forgiveness program was established in 2007 with the promise that college graduates working in government or nonprofit jobs would have the remainder of their federal student loans forgiven after 10 years. However, starting in 2017, the majority of applicants were being denied due to complex eligibility rules that were not widely known.
A report from the Government Accountability Office in 2018 revealed that 99% of applicants were rejected for reasons such as being in the wrong loan repayment plan or having their payments paused through deferment or forbearance, which were not counted towards the required 10 years of public service.
The Biden administration recognized the flaws in the program and took action to address them. In 2021, a temporary waiver was offered to allow borrowers to receive credit for past deferment or forbearance periods, and further changes were made to expand eligibility permanently in the following year.
As a result of these changes, more and more borrowers have been approved for loan cancellation as they reach the 10-year mark of public service. On Thursday, an additional 60,000 borrowers reached this milestone, bringing the total number of public workers granted relief to over 1 million. This amounts to $74 billion in loans forgiven for public servants.
Education Secretary Miguel Cardona highlighted the importance of pursuing a career in public service as a way to become debt-free within a decade. The Biden administration has now cancelled a total of $175 billion for approximately 5 million borrowers, with Public Service Loan Forgiveness accounting for the largest share of relief.
Although Biden’s broader student loan cancellation plans have faced legal challenges and setbacks, the administration remains committed to providing relief through existing programs. Despite the Supreme Court blocking a proposal to cancel up to $20,000 for 40 million Americans, the Education Department continues to explore other avenues for student loan forgiveness.
Overall, the Biden administration’s efforts to address the student loan crisis have had a significant impact on millions of borrowers, particularly those in public service roles. The recent milestone of over 1 million public workers receiving loan forgiveness underscores the administration’s commitment to relieving the burden of student debt for Americans across the country.
