Biden Administration Cancels Student Loans for Over 1 Million Public Workers

The Biden administration has announced the cancellation of student loans for more than 1 million public workers, marking a significant milestone in its efforts to deliver on promises made to educators, healthcare workers, and public safety officials. This initiative comes in the wake of previous failures that left many applicants unable to benefit from the program.

“For too long, the government failed to live up to its commitments,” President Joe Biden stated, highlighting actions taken during his administration that have resulted in large-scale loan forgiveness for public service workers. These measures follow years of complaints about the high denial rates for applicants seeking relief under the Public Service Loan Forgiveness (PSLF) program, initially launched in 2007.

Originally, the PSLF program promised federal student loan cancellation for college graduates serving in government or nonprofit roles after a decade of service. However, by 2018, a Government Accountability Office report revealed that 99% of applicants were rejected, frequently due to complex eligibility criteria and lack of clear guidelines from the Department of Education.

The Biden administration has addressed these concerns through a series of reforms, including a temporary waiver introduced in 2021 that enabled borrowers to gain credit for previously excluded periods of deferment or forbearance. This waiver was followed by a permanent expansion of eligibility criteria by the Education Department in 2022.

This expansion has seen waves of approvals under the program, which, as of the latest figures, has discharged $74 billion in debt for public workers. Education Secretary Miguel Cardona emphasized that a career in public service is a viable path to debt freedom, a critical message as the administration faces challenges in executing broader student debt cancellations.

Currently, the administration reports the total loan cancellation figure has reached $175 billion for around 5 million borrowers across various programs, including income-driven repayment plans and relief for students defrauded by educational institutions. Despite these strides, Biden’s broader student loan cancellation plan of up to $20,000 for 40 million borrowers faces legal obstructions, notably from a Missouri judge following a challenge by Republican states.

Biden’s commitment to overcoming these legal barriers continues as his administration seeks to deliver on its campaign pledges despite the Supreme Court‘s previous blockage of his large-scale loan cancellation proposal.