Additional 60,000 Public Servants to Have Student Loans Forgiven
60,000 more public servants will see their student loans forgiven as the Biden Administration expands student loan forgiveness. More than 4.8 million Americans have had student loans forgiven.
The Biden Administration announced an additional $4.5 billion in student loan forgiveness for public service workers.
That relief will go to an additional 60,000 borrowers who work in fields like law enforcement, teaching, nursing, social work, and veterans’ services.
This brings the total amount of student loans forgiven by the administration to more than $175 billion for more than 4.8 million Americans. $74 billion of that has been through the Public Service Loan Forgiveness (PSLF) Program.
The program, which was signed into law by President George W. Bush in 2007, lets certain government and non-profit employees have their student loans canceled after ten years of monthly payments. However, it was rarely used due to poor management and low acceptance rates.
“Before President Biden and Vice President Harris entered the White House, the Public Service Loan Forgiveness program was so riddled by dysfunction that just 7,000 Americans ever qualified and countless public servants were trapped making payments on debts that should have been forgiven,” said U.S. Secretary of Education Miguel Cardona. “As Secretary of Education, I want to send a message to college students across America that pursuing a career in public service is not only a noble calling but a reliable pathway to becoming debt-free within a decade.”
And as of July 1, 2024, the PSLF Program is now fully managed by the Department of Education through StudentAid.gov, making it a one-stop shop for borrowers to manage all aspects of their account.
Encouraging Public Service
Public sector unions and federal employee groups used the news to encourage students to think about a career in public service.
The American Federation of State, County, and Municipal Employees (AFSCME) is launching a new map on its website to show PSLF forgiveness across the country.
And the American Federation of Teachers (AFT) and the National Education Association (NEA) are offering members student debt clinics and a student debt navigator tool.
Court Challenges
The Biden Administration’s forgiveness plans have hit roadblocks in court, with legal challenges led by many Republican states.
In August the U.S. Supreme Court temporarily blocked a program known as the SAVE Plan while the lower courts consider its fate. The SAVE Plan was intended to provide debt relief for lower-income borrowers.
The Supreme Court earlier shut down the Administration’s plan to forgive $20,000 in federal student loans for more than 40 million borrowers.