President Joe Biden announced that over 1 million public service workers have been granted relief through a student loan forgiveness program. The program was created in 2007 to erase the remainder of federal student loans after 10 years of working in government or nonprofit jobs. However, starting in 2017, the vast majority of applicants were denied due to complicated and unclear eligibility rules. The Education Department was criticized for not making the rules clear, which led to legal and political battles surrounding the program.
The Biden administration made changes to the program in 2021 to allow borrowers to receive credit for past periods of deferment or forbearance. After updates to expand eligibility were made in 2022, waves of borrowers have been approved for loan cancellation as they reach the 10-year mark. This has led to over 1 million borrowers being granted relief, erasing a total of $74 billion in loans for public workers. The program has been heralded by Biden as a way to encourage young people to pursue careers in public service without the burden of student loan debt.
While Biden’s broader student loan plans face legal challenges and are currently halted by courts, his administration has focused on the successes of existing programs that have provided loan cancellation. In total, the administration has canceled $175 billion for approximately 5 million borrowers, with the Public Service Loan Forgiveness program accounting for the largest share of that relief. The administration has also granted loan cancellation through income-driven payment plans and through a rule offering relief to students who were defrauded by their schools.
Biden campaigned on a promise of widespread student loan cancellation, but his proposal to cancel up to $20,000 for 40 million Americans was blocked by the Supreme Court in 2021. Despite this setback, the administration attempted to implement the plan through a different legal justification, which was temporarily halted by a judge in Missouri following legal challenges from several Republican states. As a result, the administration has shifted its focus to highlighting the success of existing loan forgiveness programs that have provided significant relief for millions of borrowers.
Education Secretary Miguel Cardona stated that pursuing a career in public service is a reliable pathway to becoming debt-free within a decade, encouraging college students across America to consider working in government or nonprofit roles. The success of the Public Service Loan Forgiveness program in providing relief to over 1 million public workers has been celebrated by the Biden administration as a restoration of a promise to America’s teachers, firefighters, nurses, and other public servants. Despite legal challenges and political battles surrounding the program, changes implemented by the Biden administration have significantly increased the number of borrowers approved for loan cancellation, providing significant relief for those working in public service.
