Biden administration has canceled student loans for over 1 million public workers
FILE-President of the United States Joe Biden delivers remarks on student debt and lowering costs for Americans at Madison College in Madison, Wisconsin, United States on April 8, 2024. (Photo by Kyle Mazza/Anadolu via Getty Images)
A student loan cancellation program for public workers has provided relief for more than 1 million people, President Joe Biden announced Thursday.
In 2007, the Public Service Loan Forgiveness program was created, promising college graduates that the remainder of their federal student loans would be zeroed out after 10 years working in government or nonprofit jobs. But in 2017, the majority of applicants were rejected because of complicated and little-known eligibility rules, according to the Associated Press.
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According to a 2018 report from the Government Accountability Office, 99% of applicants were denied because they weren’t in the right loan repayment plan or because their payments were temporarily paused through deferment or forbearance — periods that weren’t counted toward the 10 years of public work.
In 2021, the Biden administration offered a temporary waiver granting borrowers the ability to receive credit for past periods of deferment or forbearance. The AP noted that a year later, the Education Department updated rules to expand eligibility permanently.
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Following the changes, more borrowers have been approved for cancellation of their student loans as they reach the 10-year mark.
Approximately 60,000 more borrowers hit the mark on Thursday, moving the total past 1 million. When Biden became president, 7,000 borrowers were granted relief over the previous four years. In all, the program has erased $74 billion in loans for public workers, the AP noted.
Moreover, the Biden administration tells the AP it has now canceled $175 billion in student loan debt for 5 million borrowers. Public Service Loan Forgiveness makes up the largest share of that debt relief, while others have had their loans canceled through income-driven payment plans and through a 1994 rule offering relief to students who were deceived by their schools.