Over 600,000 Public-Sector Employees Receive Student Loan Forgiveness Under Biden Administration
Temporary PSLF Rules Result in $42 Billion in Loan Forgiveness
The Biden administration’s temporary loosening of the rules on the Public Service Loan Forgiveness (PSLF) program has resulted in over 600,000 public-sector employees having their student loan debts forgiven, according to the U.S. Department of Education (DOE). This amounts to a total of $42 billion in loans forgiven, with each public-sector employee receiving an average of $68,000 in loan forgiveness.
Temporary Rules Allow for Previously Ineligible Loans and Payment Plans
Under the PSLF program, public sector employees can have their student loans forgiven after 10 years of qualifying public sector employment, provided they make their monthly payments through a qualifying loan repayment plan. The temporary Biden-era PSLF rules allowed for previously ineligible loan types and payment plans to count towards the 10 years of loan payments needed to qualify for full loan forgiveness through the program.
PSLF Waiver Available Until October 2021
The temporary rules allowed public sector employees to apply for a PSLF waiver until October 2021. Prior to the rule change, only about 7,000 public sector employees had qualified for loan forgiveness under the PSLF program.
Biden Administration Working to Fix Broken Student Loan System
Education Secretary Miguel Cardona credited the Biden administration with working to “fix a broken student loan system,” including through its temporary changes to the PSLF program. In total, the administration has taken credit for $66 billion in targeted loan relief to about 2.2 million borrowers.
Continued Efforts to Fight for Borrowers
Cardona emphasized the importance of continuing to fight for borrowers and not allowing progress to be derailed by partisan politics. The temporary expansion of PSLF eligibility is part of a broader effort by the Biden administration to wipe out student loan debt and create a stronger PSLF program.
- Over 600,000 public-sector employees have had their student loan debts forgiven under the Biden administration’s temporary PSLF rules.
- The temporary rules allowed for previously ineligible loan types and payment plans to count towards the 10 years of loan payments needed for full loan forgiveness.
- The Biden administration has taken credit for $66 billion in targeted loan relief to about 2.2 million borrowers.
- Education Secretary Miguel Cardona emphasized the importance of continuing to fight for borrowers and creating a stronger PSLF program.
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