President Joe Biden has unveiled a new round of student loan debt forgiveness, totaling $1.2 billion for 35,000 public-sector workers, including teachers, nurses, and firefighters. These borrowers qualify for relief through the Public Service Loan Forgiveness (PSLF) program, which has been expanded by the Biden administration to make it easier to qualify.
The administration has emphasized its commitment to addressing student loan debt, having canceled over $168 billion for nearly 4.8 million Americans. Despite facing legal challenges, including a Supreme Court ruling against a one-time forgiveness program, the administration continues to push for student debt relief.
Thursday's announcement coincides with legal battles over the SAVE (Saving on a Valuable Education) student loan repayment plan, which offers generous terms for low-income borrowers. The Supreme Court is expected to rule on the plan soon.
President Biden stated, 'From day one of my administration, I promised to fight for affordable higher education. I will continue working to make higher education accessible, despite opposition.'
The PSLF program, created in 2007, has faced administrative issues, with only 7,000 individuals receiving debt relief before Biden took office. Under PSLF, borrowers become eligible for debt cancellation after 10 years of payments while working in qualifying public-sector roles.
Biden's administration has implemented temporary measures to expand eligibility and conduct a recount of past payments to rectify administrative errors. Borrowers are now receiving credit for previously unqualified payments, benefiting those who were misled into long-term forbearance.
In addition to existing forgiveness programs, such as borrower defense to repayment and relief for disabled borrowers, the administration is working on new proposals. These include wiping away accumulated interest for borrowers with larger balances than their initial loans.
While these proposals are pending finalization, some could take effect as early as this fall, providing further relief to student loan borrowers.
