The Biden administration moved to wipe out an additional $4.28 billion in student loan debt for nearly 55,000 borrowers who serve in public jobs, officials said Friday, marking one of the final rounds of relief announced before President Biden leaves office in January. The action pushes the administration's overall student debt forgiveness to roughly $180 billion, covering nearly five million borrowers since 2021.
The relief comes through the Public Service Loan Forgiveness (PSLF) program, long criticized for its complexity and high rejection rates. In recent years, the U.S. Department of Education loosened rules and addressed administrative hurdles, allowing public servants-including teachers, nurses, members of the military, and law enforcement personnel-to claim relief after a decade of payments. "With the approval of another $4.28 billion in loan forgiveness for nearly 55,000 public servants, the Administration has secured nearly $180 billion in life-changing student debt relief for nearly five million borrowers," said U.S. Secretary of Education Miguel Cardona.
The PSLF program traditionally forgives remaining balances after 120 qualifying monthly payments, often accumulated over 10 years of public service. "Four years ago, the Biden-Harris Administration made a pledge to America's teachers, service members, nurses, first responders, and other public servants that we would fix the broken Public Service Loan Forgiveness Program, and I'm proud to say that we delivered," Mr. Cardona added.
President Biden has granted more student debt relief than any of his predecessors, including $78 billion in forgiveness for over one million borrowers through PSLF. "From Day One of my Administration, I promised to make sure that higher education is a ticket to the middle class, not a barrier to opportunity," Mr. Biden said in a statement. "Because of our actions, millions of people across the country now have the breathing room to start businesses, save for retirement, and pursue life plans they had to put on hold."
Still, the administration's efforts to implement broad-based student loan forgiveness have been repeatedly thwarted. The Supreme Court blocked one sweeping plan, and another large-scale cancellation proposal remains ensnared in legal battles. Republican lawmakers have criticized the administration's moves, arguing that debt cancellation shifts burdens onto taxpayers and that many who already repaid loans receive no benefit.
Despite legal hurdles, the administration has leaned on existing federal programs, refining them to improve access and streamline eligibility. As of July 2024, PSLF management moved entirely under the Department of Education through StudentAid.gov, simplifying the tracking of payments and forgiveness progress.
In addition to PSLF changes, the administration has approved $56.5 billion in relief for more than 1.4 million borrowers through income-driven repayment adjustments. It also cleared $28.7 billion for 1.6 million borrowers defrauded by their schools, and $16.2 billion for those with total and permanent disabilities.
Mr. Biden, who ends his term having enacted the largest student loan cancellations in U.S. history, highlighted related efforts, such as a $900 increase to the maximum Pell Grant. "The U.S. Department of Education's successful transformation of the PSLF Program is a testament to what's possible when you have leaders...who are relentlessly and unapologetically focused on making government deliver for everyday working people," said Mr. Cardona.
