Biden Admin Gives Student Debt Break To Many Public Service Workers

(USNewsBreak.com) – The Biden Administration has worked hard over the past few years to eliminate as much student loan debt as possible. While the Supreme Court struck down the original plan to forgive up to $20,000 for qualifying loan holders, that hasn’t stopped President Joe Biden from seeking other methods. As a result, the administration has canceled more than $100 billion in debt. Now, the administration is forgiving even more.

On Thursday, March 21, Biden announced the cancelation of $5.8 billion in student loans. This round of forgiveness will benefit 77,700 people who work in the public service sector. That includes nurses, teachers, firefighters, social workers, and others. Changes to the Public Service Loan Forgiveness (PSLF) program made the debt cancelation possible.

Those who qualify for the PSLF program will receive an email from President Biden notifying them they are eligible. It amounts to around $77,000 per person.

President Biden canceled $5.8 billion in student loan debt for 77,700 public service workers through the Public Service Loan Forgiveness Program.

The workers who will receive the debt include teachers, nurses, and firefighters. https://t.co/34QZxZNIu8

— The Hill (@thehill) March 21, 2024

This action brings the total of loans forgiven through PSLF to $62.5 billion and relief to 871,000 borrowers. Before that, only around 7,000 people had received the forgiveness promised to them. Over the next two years, another 381,000 people will become eligible so long as they continue to make scheduled payments and work in the public sector.

According to the Department of Education, the administration has approved an additional $81.5 billion in cancelation over the past few years through various means. Some included fixes to the income-driven repayment plans and cancelations for those cheated out of their money when their schools closed halted programs. More than half a million borrowers with a total and permanent disability also saw their loans forgiven.

Despite the erasure of more than $200 billion in debt, many Americans remain saddled with the debt to the tune of approximately $1.77 trillion. The administration is working to find ways to erase as much debt as possible by rolling out the Saving on a Valuable Education (SAVE).