The Biden administration has successfully canceled loans for over one million public workers through a student loan cancellation program.
President Joe Biden announced this milestone on Thursday, stating that his administration has honored its commitment to teachers, firefighters, nurses, and other public servants, even while his broader student loan initiatives face legal challenges from Republican-led states.
“For too long, the government failed to live up to its commitments,” Biden said in a statement. “We vowed to fix that, and because of actions from our administration, now over one million public service workers have gotten the relief they are entitled to under the law.”
The Public Service Loan Forgiveness (PSLF) program, established in 2007, promised college graduates that the remaining balance of their federal student loans would be forgiven after 10 years of employment in government or nonprofit positions.
President Joe Biden speaks about student loan debt, April 8, 2024, in Madison, Wis. On Thursday, the Biden administration announced it has now canceled loans for more than 1 million public workers.
Evan Vucci/AP Photo
However, starting in 2017, the majority of applicants faced rejection due to complex and often obscure eligibility requirements. A 2018 report from the Government Accountability Office (GAO) revealed that 99% of applicants were denied, frequently because they were not enrolled in the correct loan repayment plan or had temporary pauses in payments due to deferment or forbearance—periods that did not count toward the required 10 years.
The GAO criticized the Education Department for failing to clarify the program’s rules. The program became a point of contention, with Democrats urging the Trump administration to ease the restrictions and uphold its intended purpose.
Education Secretary Betsy DeVos, however, maintained that she was adhering to the statutory framework established by Congress.
In 2021, the Biden administration declared the program “broken” and introduced a temporary waiver to allow borrowers to receive credit for prior deferment or forbearance periods.
A year later, the Education Department revised the eligibility criteria more permanently. As a result, numerous borrowers have been approved for loan cancellation while they complete the 10-year requirement.
On Thursday, an additional 60,000 borrowers reached that milestone, bringing the total to over one million. When Biden assumed office, only 7,000 borrowers had received relief in the preceding four years.
U.S. Secretary of Education Miguel Cardona offers remarks at the first-ever Back-to-School Night at the White House in Washington, Sept. 21, 2024. “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,” Cardona said in a statement Thursday.
Rod Lamkey, Jr./AP Photo
Overall, the program has forgiven $74 billion in loans for public workers. “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,” said Education Secretary Miguel Cardona.
Amid ongoing legal challenges to Biden’s student loan plans, the administration has increasingly highlighted the substantial loan cancellations achieved through existing programs. In total, the administration reports canceling $175 billion for approximately 5 million borrowers.
Public Service Loan Forgiveness accounts for the largest share of this relief, with others benefiting from income-driven payment plans and a 1994 rule that provides relief to students defrauded by their institutions.
Biden’s campaign promise of widespread student loan cancellation faced a setback last year when the Supreme Court blocked his proposal to cancel up to $20,000 for 40 million Americans, leading the Education Department to seek alternative legal justifications.
This article includes reporting from The Associated Press
