Biden's New Plan Cancels Student Loans for Thousands of Public Workers

The Biden administration has approved the cancellation of approximately $5 billion in student loan debt for nearly 74,000 borrowers. This latest action includes $3.2 billion in relief for 43,900 individuals through the Public Service Loan Forgiveness (PSLF) waiver and $1.7 billion for 29,700 borrowers via administrative adjustments to income-driven repayment plans. The forgiveness benefits a range of public service workers such as nurses, firefighters, and teachers who are eligible for debt cancellation after ten years of service under a 2007 law. An additional 30,000 borrowers are receiving relief because they have been in income-driven repayment plans for at least 20 years.

The debt cancellation is part of a broader effort by the Biden Administration to provide financial relief to student loan borrowers. The decision accelerates a plan originally set to take effect in July, now beginning in February, to offer faster relief. This brings the total number of borrowers who have received debt cancellation during the Biden Administration to about 3.7 million.

This latest round of debt forgiveness follows the Supreme Court's rejection of a more extensive plan proposed by President Biden, which sought to forgive $430 billion in college debt. While the administration's focus on loan forgiveness has been met with criticism by some who call for measures to address the rising cost of college education, the current debt cancellations represent adjustments within the scope of existing government programs.