Over 600,000 Public Sector Workers Have Student Loans Forgiven Thanks To Biden Administration
Some student loan borrowers got their wish for debt relief!
CNN reported over 600,000 loans of the Public Service Loan Forgiveness program – aimed to get more people to work in public service jobs – have been forgiven. The loans were forgiven since October 2021, after the Biden administration temporarily expanded on eligibility.
That brings the total to $42 million in federal student loan debt forgiveness.
The program plans to get rid of remaining federal student loan debt after eligible nonprofit or government workers make monthly payments for 10 years.The program is open to military members, nurses, teachers, librarians, public interest lawyers, and other public workers, according to WXYZ Detroit. Secretary of Education Miguel Cardona highlighted how the Biden Administration has made it a priority to change the existing system.
“Since Day One, the Biden-Harris Administration has worked relentlessly to fix a broken student loan system” Cardona said.
“The difference that Public Service Loan Forgiveness is making in the lives of hundreds of thousands of Americans reminds us why we must continue doing everything we can to fight for borrowers and why families cannot afford to have progress derailed by partisan politicians,” she continued.
This program is separate from Biden’s student debt relief plan, which erases millions from borrowers, regardless of what industry they work in.
“The improved PSLF Help Tool is another step forward to modernize and simplify the process for people who rely on us to carry out the law effectively,” Richard Cordray, Federal Student Aid COO, said in a statement.
Permanent changes to the PSLF program, set to take effect in July, include borrowers being allowed to receive credit toward PSLF on payments that are made late, in increments or a lump sum. Other rules state that certain time spent in periods of deferment or forbearance will also count toward PSLF, but with some limitations – like deferments for cancer treatment, military service, and economic hardship.