A student loan cancellation program for public workers has seen a significant increase in approvals, with relief granted to over 1 million Americans. This marks a substantial rise 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, aimed to alleviate federal student loan debt for college graduates after 10 years of service in government or nonprofit roles. However, starting in 2017, the program faced challenges as the majority of applicants were denied due to complex eligibility criteria.
A 2018 report from the Government Accountability Office revealed that 99% of applicants were rejected, often because they did not meet specific loan repayment plan requirements or because certain payment pauses were not counted towards the 10-year public service commitment.
In response to these issues, the Biden administration made changes to the program in 2021, offering temporary waivers and updating rules to expand eligibility permanently. As a result, more borrowers have been approved for loan cancellation as they reach the 10-year mark, with an additional 60,000 individuals achieving relief recently, bringing the total number of beneficiaries to over 1 million.
Education Secretary Miguel Cardona emphasized the value 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, contributing significantly to the administration's broader efforts in student loan relief.
While President Biden's initial proposal for widespread student loan cancellation faced legal challenges, his administration has focused on existing programs that have provided substantial relief. In total, approximately $175 billion has been canceled for about 5 million borrowers, with the Public Service Loan Forgiveness program constituting a significant portion of this relief.
Despite setbacks in broader student loan cancellation initiatives, the administration remains committed to addressing student debt through various programs and initiatives, offering significant financial relief to millions of borrowers.
