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Biden Administration Cancels $4.5 Billion in Student Debt for Public Service Workers
On October 17, the Biden administration revealed a significant debt relief initiative, canceling $4.5 billion in student loans for over 60,000 individuals working in local, state, federal, and tribal government positions, along with others in public service roles. This move underscores the administration’s commitment to reforming the Public Service Loan Forgiveness (PSLF) program.
The PSLF program, designed to eliminate student loan debt for public servants after making consistent payments for a decade, has undergone substantial adjustments to address previous shortcomings. According to the Department of Education, these reforms have made it easier for eligible professionals to seek loan forgiveness.
“From day one, the Biden-Harris administration made fixing this broken program a top priority, and today, I’m tremendously proud that over one million teachers, nurses, social workers, veterans, and other public servants have received life-changing loan forgiveness,” stated U.S. Secretary of Education Miguel Cardona. “As Secretary of Education, I want to send a message to college students across America that pursuing a career in public service is not only a noble calling but a reliable pathway to becoming debt-free within a decade.”
President Biden’s push for student debt relief has faced multiple legal challenges, particularly from Republican lawmakers. However, the administration continues to focus on the considerable loan cancellation achievements realized through existing programs, which now total over $175 billion, including $74 billion through the PSLF.
The PSLF program has faced scrutiny since its inception. In 2017, it was reported that a vast majority of applicants for forgiveness were denied, prompting a 2018 Government Accountability Office report that criticized the Department of Education for unclear rules. By 2022, these rules were adjusted to facilitate better access.
In recent years, the administration has made strides in granting loan forgiveness, with 35,000 waivers processed in July alone. Prior to Biden’s term, only about 7,000 borrowers had received relief over a four-year span.
AFSCME President Lee Saunders remarked on the significance of this continuous progress, noting how it “empowers the essential workers who keep our public schools, hospitals, and communities running.” The union is mobilizing support for Vice President Kamala Harris to help maintain this momentum for public service workers.
Public sector workers seeking to benefit from the loan forgiveness program are encouraged to visit StudentAid.gov. The Department of Education is proactively reaching out to state and local leaders to promote awareness of the relief options available. Additionally, major public sector unions are echoing this outreach, with organizations like the American Federation of Teachers and the National Education Association providing student debt clinics and an online student debt navigator tool for their members seeking assistance with loan forgiveness.
In a recent video released by the White House, Rhode Island kindergarten teacher Kelly Beckford received the news directly from President Biden that her debt, amounting to $46,000, had been completely forgiven after 12 years of payments. “By the way, you’re $46,000 richer,” Biden acknowledged with satisfaction. “I just forgave your debt. Done. Done done, done, and you deserve it.”
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