The Biden administration announced on Thursday the cancellation of an additional $4.5 billion in student debt for over 60,000 borrowers. This latest round of relief is a result of the U.S. Department of Education’s improvements to the Public Service Loan Forgiveness (PSLF) program, which had previously faced challenges.
President Joe Biden, who has approved more student debt forgiveness than any previous U.S. president, stated that the number of borrowers benefiting from the program under his administration has now surpassed 1 million. He acknowledged the significance of public service workers, including teachers, nurses, and firefighters, as essential to communities and the nation, while noting that the government had previously fallen short in upholding its commitments.
The PSLF program was established by President George W. Bush in 2007, designed to allow certain nonprofit and government employees to have their federal student loans forgiven after 10 years. In 2013, the Consumer Financial Protection Bureau estimated that about one-quarter of American workers might be eligible for this program. However, the program had experienced numerous issues, with borrowers often finding out that they did not qualify due to technicalities related to loan type or repayment plans.
Before Biden assumed office, only 7,000 people had been granted debt relief under PSLF, with rejection rates reaching as high as 98% in some years, according to the U.S. Department of Education. Under Biden’s leadership, the department has eased the program’s requirements and reformed its management.
Eligible borrowers for this round of relief are expected to receive notification of their canceled debt in the upcoming weeks. The average student loan balance forgiven under PSLF is approximately $70,000, as estimated by higher education expert Mark Kantowitz.
The announcement comes during the final weeks of a closely contested political race between Vice President Kamala Harris and former President Donald Trump. Harris, in her role within the Biden administration and her campaign, has pledged to strengthen the PSLF program if elected, focusing on encouraging more Black men to become public school teachers.
In contrast, Trump has proposed eliminating the Public Service Loan Forgiveness initiative and has expressed opposition to the Biden administration’s efforts to cancel education debt.
