Biden Administration Forgives $6 Billion in Student Debt for Public Servants

The Biden administration announced on Thursday that it will be forgiving almost $6 billion in student debt for 77,700 borrowers. These recipients will receive an email from President Joe Biden notifying them of their debt cancellation. The individuals who qualify for this round of student loan forgiveness are public service employees, such as teachers, nurses, social workers, and firefighters.

This forgiveness amounts to about $77,000 per person and is part of the Biden administration’s efforts to provide debt relief to almost 4 million people. Currently, Americans are carrying about $1.77 trillion in student debt, which has made it difficult for many college graduates to achieve financial milestones, such as buying a home.

After the Supreme Court invalidated the Biden administration’s plan for broad-based student loan forgiveness last year, the administration has turned to existing and new loan repayment plans to provide relief. One of these plans is the new program called SAVE, which aims to fix problems in the nation’s student loan repayment system. Additionally, the administration has made it easier for public servants to get their debt erased.

U.S. Secretary of Education Miguel Cardona stated, “For too long, our nation’s teachers, nurses, social workers, firefighters, and other public servants faced logistical troubles and trapdoors when they tried to access the debt relief they were entitled to under the law. With this announcement, the Biden-Harris Administration is showing how we’re taking further steps not only to fix those trapdoors but also to expand opportunity to many more Americans.”

The Biden administration said that 77,700 borrowers who are enrolled in the Public Service Loan Forgiveness (PSLF) program will receive debt forgiveness. This includes public servants who enrolled in the Biden administration’s limited PSLF waiver, which allows public sector workers who haven’t previously qualified for loan relief to receive credit for past repayments.

The PSLF program, which has been in place since 2007, aimed to forgive the student debt of Americans who work in public sector jobs for at least 10 years. However, due to its complex regulations and misleading guidance from loan-servicing companies, only 7,000 people received forgiveness through the PSLF prior to the Biden administration. Since the White House made changes to PSLF, about 871,000 Americans have received debt relief.  

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