President Joe Biden recently announced that more than 1 million public service workers have been granted relief under a student loan cancellation program, a significant increase from the mere 7,000 approvals before the program was updated by the Biden administration two years ago. The Public Service Loan Forgiveness program, established in 2007, was designed to forgive federal student loans for college graduates after 10 years of working in government or nonprofit jobs. However, a vast majority of applicants were initially denied due to complex eligibility rules, including issues related to loan repayment plans and periods of deferment or forbearance.
The Public Service Loan Forgiveness program faced legal and political challenges since the Trump administration, with Democrats urging for looser rules while then-Education Secretary Betsy DeVos maintained that she was following Congress’ rules. Recognizing that the program was “broken,” the Biden administration made changes in 2021 to allow borrowers to receive credit for past periods of deferment or forbearance and expanded eligibility more permanently in 2022. Since then, increasing numbers of borrowers have been approved for loan cancellation as they reach the 10-year mark, with 60,000 more workers approved on Thursday alone, bringing the total to over 1 million public service workers who have had $74 billion in loans erased.
Education Secretary Miguel Cardona emphasized the importance of pursuing a career in public service, noting that it not only benefits society but also provides a reliable pathway to becoming debt-free within a decade. The Biden administration, facing legal challenges to its broader student loan plans, has focused on existing programs that have granted record sums of loan cancellations. In total, the administration has canceled $175 billion in loans for around 5 million borrowers, with the Public Service Loan Forgiveness program accounting for a significant portion of that relief, alongside income-driven payment plans and a rule dating back to 1994 that offers relief to students who were defrauded by their schools.
While President Biden campaigned on a promise of comprehensive student loan cancellation, his proposal to cancel up to $20,000 for 40 million borrowers was blocked by the Supreme Court last year. Despite efforts to try again using a different legal rationale, a judge in Missouri temporarily halted the plan after Republican-led states challenged it. As the administration continues to face obstacles to its broader student loan initiatives, it has made significant progress in providing relief to public service workers through the Public Service Loan Forgiveness program, offering hope to college students seeking to pursue careers in government and nonprofit sectors.
