More Than 1 Million Public Workers Benefit from Student Loan Cancellation Program
WASHINGTON – A federal student loan cancellation initiative designed for public service workers has successfully granted relief to over 1 million Americans, a significant increase from the mere 7,000 individuals who were approved prior to the program’s overhaul by the Biden administration two years ago.
On Thursday, President Joe Biden addressed this milestone, emphasizing his administration’s commitment to serving America’s dedicated teachers, firefighters, nurses, and other public sector employees. This announcement comes at a time when the broader student loan relief measures proposed by the administration are currently stalled in the courts due to legal challenges from several Republican-led states.
“For too long, the government failed to fulfill its commitments,” said Biden. “We promised to rectify that, and thanks to our administration’s actions, over 1 million public service workers have received the relief they are entitled to under the law.”
Initiated in 2007, the Public Service Loan Forgiveness program was established to assure college graduates that their federal student loans would be forgiven after ten years of employment in government or nonprofit roles. However, from 2017 onward, a substantial number of applicants faced rejection, primarily due to convoluted and insufficiently communicated eligibility criteria.
A report from 2018 highlighted that an astonishing 99% of applicants were denied, often because they were not enrolled in the correct repayment plan or had their payments paused through deferment or forbearance—time periods that did not contribute to the required ten years of public service.
The Education Department was criticized for its lack of clarity regarding the program’s rules.
The program became a focal point for political contention, with Democratic lawmakers urging the previous administration to alleviate the stringent requirements and honor the program’s intended purpose. However, the then Education Secretary defended her adherence to legislative guidelines.
Characterizing the initiative as “broken,” the Biden administration implemented a temporary waiver in 2021, enabling borrowers to receive credit for prior deferment or forbearance periods, among other reforms. The following year, the Education Department revised the rules to expand eligibility more permanently.
Since these adjustments, a steady stream of borrowers has been approved for loan cancellations upon reaching their ten-year milestone. On Thursday alone, an additional 60,000 borrowers achieved this benchmark, surpassing the significant milestone of 1 million approvals. At the beginning of Biden’s term, only 7,000 borrowers had received such relief in the preceding four years.
The program has collectively removed $74 billion in student loan debts for public service workers, underscoring its extensive impact.
“I want to convey a message to college students nationwide that pursuing a career in public service is not only a commendable choice but also a viable path to becoming debt-free within a decade,” stated Education Secretary Miguel Cardona.
In light of ongoing legal challenges regarding broader student loan measures, the Biden administration has increasingly focused on the substantial relief afforded through existing programs.
Overall, the administration reports that it has successfully canceled $175 billion in student loans for about 5 million borrowers, with the Public Service Loan Forgiveness program accounting for a significant portion of this relief. Other forms of cancellation have occurred through income-driven repayment plans and provisions aimed at assisting students defrauded by their educational institutions.
While Biden campaigned on the promise of expansive student loan cancellation, his initial proposal to forgive up to $20,000 for 40 million Americans was blocked by the Supreme Court last year. The administration was prompted to reevaluate its approach, but a subsequent legal challenge from several Republican states has temporarily impeded further plans.
