Based on a Department of Education (ED) declaration issued on Monday, 615,000 employees in the public sector have had $42 billion in student debt forgiven as the Biden administration declared changes to Public Service Loan Forgiveness (PSLF) and briefly increased forgiveness eligibility in October 2021.
After serving for ten years in the public sector, borrowers of federal student loans who work as nurses, educators, government personnel, and other professionals are eligible for the PSLF program, which enables debt forgiveness.
The program was famously demanding before a redesign starting in 2021, only clearing less than 1% of applicants as of 2018, with numerous rejections resulting from borrowers sticking to the incorrect kind of payment plan. Because of this, the Biden administration has declared it a top priority to fix systemic problems and simplify the procedure for consumers who meet the criteria for forgiveness.
Education Secretary Miguel Cardona stated in the statement that “the Biden-Harris Administration has performed continuously to update a violated student loan system, such as by ensuring we meet the pledge of Public Service Loan Forgiveness for individuals who have served for more than a decade helping the community and our nation.”