President Joe Biden on Thursday announced a major milestone in his administration’s efforts to address student loan debt: the Public Service Loan Forgiveness (PSLF) program has now granted relief to over 1 million Americans, The Associated Press reports.
This marks a dramatic increase from just 7,000 borrowers who received forgiveness under the program before the Biden administration implemented significant changes two years ago.
The PSLF program, established in 2007, aimed to forgive federal student loans for borrowers working in government or nonprofit positions after 10 years of service. However, the program was plagued by confusing eligibility rules and widespread denials. A 2018 Government Accountability Office (GAO) report found that 99% of applicants were rejected, often due to unclear requirements or unintentional program missteps.
The Biden administration, acknowledging the program’s failures, introduced temporary waivers in 2021 and permanent changes in 2022, making it easier for borrowers to qualify. These efforts have seen a surge in successful applications, with 60,000 more borrowers reaching the 10-year mark and receiving forgiveness on Thursday alone.
The program has erased a total of $74 billion in loans for public workers. As Biden’s broader student loan forgiveness proposals face legal hurdles, the administration has highlighted the significant amount of debt relief achieved through existing programs like PSLF.
In total, the Biden administration claims to have canceled $175 billion in loans for 5 million borrowers. While PSLF accounts for the majority of this relief, other programs such as income-driven payment plans and a 1994 rule addressing student loan fraud have also contributed.
Despite his campaign promise for widespread student loan cancellation, Biden’s efforts have been stymied by legal challenges. The Supreme Court blocked his plan to cancel up to $20,000 for 40 million borrowers, and a Missouri judge has temporarily halted a revised plan after legal action by Republican states.
