Public Service Loan Forgiveness Program Grants Relief to Over 1 Million Americans

President Joe Biden announced on Thursday that over 1 million public service workers have been granted relief through the Public Service Loan Forgiveness program. This milestone marks a significant increase from just 7,000 approvals before the program was updated by the Biden administration two years ago.

The program, created in 2007, promised college graduates that the remainder of their federal student loans would be forgiven after 10 years of working in government or nonprofit jobs. However, starting in 2017, the majority of applicants were denied due to complex eligibility rules.

The Biden administration took action in 2021 to address the program’s shortcomings, offering temporary waivers and updating the rules to expand eligibility. Since then, waves of borrowers have been approved for loan cancellation as they reach the 10-year mark, with 60,000 more reaching this milestone on Thursday.

Education Secretary Miguel Cardona emphasized the importance of pursuing a career in public service as a reliable pathway to becoming debt-free within a decade. The program has already erased $74 billion in loans for public workers, with a total of $175 billion canceled for about 5 million borrowers through various relief programs.

Despite facing legal challenges to his own student loan cancellation plans, Biden’s administration has focused on providing relief through existing programs. While his proposal to cancel up to $20,000 for 40 million Americans was blocked by the Supreme Court, the administration continues to work towards alleviating the burden of student loan debt for millions of borrowers.