The Biden-Harris Administration has announced the approval of approximately $4.5 billion in additional student loan relief for more than 60,000 borrowers employed in public service roles. This initiative is part of broader modifications to the Public Service Loan Forgiveness (PSLF) Program, which has facilitated over $175 billion in loan forgiveness for more than 4.8 million Americans. Within this total, approximately $74 billion has been allocated to over one million borrowers through PSLF.
Details of the Relief Funds
Details regarding the distribution of these relief funds by state and the number of borrowers benefiting from this approval were also provided. Prior to the Biden administration, only 7,000 public servants had received debt relief through this program.
Secretary of Education’s Remarks
U.S. Secretary of Education Miguel Cardona remarked that the Biden-Harris administration focused on reforming the previously ineffective PSLF Program that had excluded many eligible borrowers. He noted that careers in public service should be recognized as a viable pathway to achieving loan forgiveness.
PSLF Program Overview
The PSLF program is designed to forgive the remaining student loan balance for individuals who complete 120 qualifying monthly payments. The recent round of relief includes borrowers who had participated in a limited PSLF waiver that expired in October 2022, along with improvements to the program instituted by the current administration.
Outreach Initiatives
In an effort to increase participation in the PSLF program, several public sector unions, including the American Federation of Teachers and the National Education Association, are launching outreach initiatives to educate their members about the program and assist them with the application process. Additionally, the Department of Education is proactively reaching out to state and local officials to promote the advantages of PSLF participation.
Broader Actions on Student Debt
The Administration has undertaken significant actions aimed at reducing student debt burdens and broadening educational opportunities. These actions encompass various forms of debt relief beyond PSLF, including substantial provisions for borrowers under Income-Driven Repayment plans and those impacted by school closures or fraudulent activities.
Commitment to Reform
The release of state-by-state data illustrating the effects of PSLF discharges and approvals underscores the Administration’s commitment to reforming and improving the student loan forgiveness framework.
Source: U.S. Department of Education Press Release