Milestone- More than one million public servants cancel $74 billion in student loans after updated rules two years ago

On October 17, the Biden administration announced a significant milestone, revealing that over one million public service workers, including teachers, firefighters, and nurses, have benefited from student loan forgiveness. This achievement comes in the wake of the administration’s updates to the Public Service Loan Forgiveness (PSLF) program two years ago, which had previously seen only 7,000 successful cancellations under the program.

During his campaign, Biden pledged to broadly cancel student debt. However, his proposal to waive up to $20,000 in debt for 40 million borrowers faced legal challenges due to Republican opposition and was ultimately rejected by the Supreme Court last year. In light of this setback, the administration has focused on highlighting the record number of loan cancellations achieved under existing programs, celebrating these results on October 17.

The PSLF program, established in 2007, promises that borrowers who work in government or nonprofit sectors for ten years can have their remaining federal student loans forgiven. However, since 2017, most applicants have been denied due to the program’s complex requirements.

A 2018 report from the government accountability office revealed that 99% of applications were rejected, primarily because borrowers failed to select an appropriate repayment plan or because deferments were not counted toward the 10-year requirement. In response, House Democrats urged the Trump administration to relax regulations to uphold the spirit of the program, while then-Education Secretary Betsy DeVos maintained that she was strictly adhering to the legislative guidelines.

Upon taking office, the Biden administration acknowledged the shortcomings of the program. In 2021, they introduced a temporary waiver option, allowing borrowers to receive extensions or added grace periods. A year later, the Department of Education revised its policies to broaden the eligibility for deferments. Since then, a steady stream of borrowers has seen their remaining loans forgiven upon reaching the ten-year mark, with an additional 60,000 borrowers reaching milestones on October 17, pushing the total over one million. Overall, the program has eliminated $74 billion in loans for public service workers.

Education Secretary Miguel Cardona stated, “I want to send a message to students nationwide: pursuing public service is not only a noble mission but also a reliable path to eliminate student debt within ten years.”

The Biden administration also noted that approximately 5 million borrowers have had around $175 billion in loans forgiven through various programs. The PSLF program accounts for the largest share of these cancellations, while others have benefited from income-driven repayment plans and provisions for students misled by their institutions dating back to 1994.