Biden administration erases $1.2 billion in student debt for public sector workers

President Joe Biden has announced a $1.2 billion student loan forgiveness package for 35,000 public-sector workers, including teachers, nurses, and firefighters.

According to a report from CNN, the relief comes through the Public Service Loan Forgiveness (PSLF) program, which the Biden administration has expanded since its inception nearly 20 years ago. The administration has canceled more than $168 billion in student debt to date, benefiting approximately 4.8 million Americans.

According to CNN, the administration has managed to erase more student debt than any previous presidential administration, in spite of  the Supreme Court's ruling last year to invalidate the one-time student loan forgiveness initiative.

Before Biden's presidency, only 7,000 people had received debt relief through the PSLF program. To qualify for PSLF, borrowers must make ten years' worth of consecutive monthly payments while serving in an eligible public-sector position with a non-profit organization or government agency.

In 2021, Biden introduced a temporary waiver to expand PSLF eligibility, allowing some borrowers to retroactively obtain credit for previously ineligible payments.

The administration has also reportedly conducted a one-time review of past repayments to rectify "past administrative failures," potentially granting borrowers credit towards forgiveness, regardless of their payment plan enrollment history.

The administration is reportedly exploring new debt relief plans, such as eliminating accrued interest for individuals whose loan balances exceed their original borrowed amount. While these proposals have not been finalized, some could be implemented as early as this fall.