The United States Department of Education has announced plans to forgive $1.2 billion in student debt for approximately 35,000 public service workers.Â
This latest relief announced on Thursday, July 18th, is part of the Biden administration’s ongoing efforts to improve the Public Service Loan Forgiveness (PSLF) program.
U.S. Secretary of Education Miguel Cardona praised the move, stating, “Once again, the Biden-Harris administration delivers on its historic efforts to reduce the burden of student debt — making needed and long overdue improvements to the Public Service Loan Forgiveness Program.”
The PSLF, initiated in 2007 under President George W. Bush, aims to provide debt relief to eligible public service workers.Â
However, its strict requirements often barred many technicalities, such as the type of loan or the repayment plan used.
Under the revisions made by President Biden’s administration, previously ineligible borrowers who have continued working for qualifying employers can now consolidate their loans and gain credit for past payments.Â
This change follows the expiration of a crucial waiver in October 2022, designed to address past program inefficiencies.
To date, the Biden administration has cleared about $69.2 billion in student loans through the PSLF for nearly 946,000 borrowers—a substantial increase from the 7,000 beneficiaries before his term.
This latest round of debt relief comes amid ongoing legal challenges to the administration’s student loan forgiveness efforts.Â
Despite these obstacles, the Education Department has approved almost $169 billion in loan forgiveness for approximately 4.8 million individuals through various initiatives.
The announcement reflects fewer beneficiaries than in previous relief waves, likely due to recent legal setbacks affecting the department’s new SAVE repayment plan.Â
In June, courts in Kansas and Missouri temporarily halted large portions of this plan, with several states arguing that the department had exceeded its authority.
