Over one million public service workers have had their student loans canceled by the Biden administration.
The program has granted relief to more than 1 million Americans, up from just 7,000 who were approved before it was updated by the Biden administration two years ago.
The big picture: The canceled loans total $175 billion for about 5 million borrowers, with Public Service Loan Forgiveness accounting for the largest share of the relief.
- The Public Service Loan Forgiveness program was created in 2007, promising college graduates that the remainder of their federal student loans would be zeroed out after 10 years working in government or nonprofit jobs.
- The Education Department was faulted for failing to make the rules clear, resulting in 99% of applicants being denied.
- Since then, the Biden administration offered a temporary waiver allowing borrowers to get credit for past periods of deferment or forbearance, and updates have expanded eligibility more permanently.
State of play: The Biden administration had faced legal challenges to its own student loan plans, including a proposal to cancel up to $20,000 for 40 million Americans, which was blocked by the Supreme Court.
What they’re saying: “For too long, the government failed to live up to its commitments,” said President Joe Biden in a statement. “We vowed to fix that, and because of actions from our administration, now over 1 million public service workers have gotten the relief they are entitled to under the law.”
