The Biden administration has made another major move to tackle the student debt crisis, approving $4.28 billion in loan forgiveness for nearly 55,000 public service workers.
This latest round of relief brings the total student loan forgiveness to a staggering $180 billion, benefiting nearly five million Americans.
The move is part of the administration’s broader efforts to fix the broken Public Service Loan Forgiveness (PSLF) program and provide much-needed relief to teachers, nurses, firefighters, and other public servants who dedicate their lives to the community.
In a statement celebrating the success, Education Secretary Miguel Cardona emphasized that the administration’s commitment to public service workers has resulted in life-changing debt relief.
“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,” Cardona said.
The $4.28 billion announced on Friday is part of the ongoing transformation of the PSLF program, which has now forgiven $78 billion in loans for over a million borrowers under this administration alone.
The PSLF program, which offers forgiveness for borrowers who make 120 qualifying monthly payments while working in public service, has been significantly overhauled by the Biden-Harris administration.
The recent changes include improvements that make it easier for borrowers to qualify for forgiveness and track their progress toward the 120-payment requirement.
The department also made regulatory changes to expand eligibility, helping more public service workers access relief.
In addition to the PSLF fixes, the administration has implemented several other measures to alleviate student loan debt.
These include approving $56.5 billion for over 1.4 million borrowers under Income-Driven Repayment plans, which offer more affordable payment terms based on income. The government also provided $28.7 billion in loan forgiveness for borrowers defrauded by their schools or who attended institutions that closed unexpectedly.
Furthermore, the Biden administration has approved $16.2 billion in relief for nearly 572,000 borrowers with total and permanent disabilities, ensuring that they are not burdened by student loans they are unable to repay. These measures are part of a broader strategy to make higher education more accessible and reduce the financial barriers many face after graduation.
In addition to these student debt relief efforts, the administration also increased the maximum Pell Grant by $900, marking the largest increase in a decade.
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