Biden-Harris Administration Gives Green Light for $1.2 Billion in Student Debt Relief to 35,000 Public Service Workers

The Biden-Harris Administration has announced the approval of approximately $1.2 billion in additional student loan relief for 35,000 borrowers nationwide employed in public service. These approvals come as a result of significant enhancements made by the Administration to the Public Service Loan Forgiveness (PSLF) Program. This relief expands on the efforts of President Biden and his Administration to provide relief to a large number of borrowers across the nation. The total loan forgiveness sanctioned by the Biden-Harris Administration now amounts to $168.5 billion for 4.76 million Americans, which includes $69.2 billion for 946,000 borrowers benefiting from PSLF. Prior to President Biden’s tenure, only 7,000 public servants had received debt forgiveness through PSLF.

“The Biden-Harris administration continues to fulfill its promises to alleviate the student debt burden by instituting necessary and long overdue improvements to the Public Service Loan Forgiveness (PSLF) Program. The additional Americans approved for PSLF today are diligent public servants who will finally experience the financial relief they were promised. All PSLF recipients can conveniently monitor and manage their progress through StudentAid.gov,” stated U.S. Secretary of Education Miguel Cardona. “This relief will bring tangible changes to their lives and marks another success for this administration’s rigorous efforts to rectify a flawed student loan system.”

This relief is a direct outcome of the Biden-Harris Administration’s dedication to revamping the PSLF Program, which aids public servants—such as teachers, nurses, firefighters, and others—by pardoning the outstanding student loan balance for those fulfilling the required 120 qualifying monthly payments.

The debt relief introduced today includes borrowers who have availed themselves of the Biden-Harris Administration’s limited PSLF waiver, a temporary opportunity that concluded in October 2022, as well as improvements instituted by this Administration to the program.

Secretary Cardona will be visiting Denmark, South Carolina, alongside Congressman James Clyburn to make this announcement. They are scheduled to tour Voorhees College and Denmark Technical College and engage with borrowers who have benefited from the Administration’s student loan relief initiatives.

“The Biden-Harris Administration’s measures to address the student loan debt burden are positively impacting the lives of my constituents,” expressed Congressman Clyburn. “Every day, educators, law enforcement officers, and other public servants who have devoted themselves to our community are reaping the benefits of this Administration’s efforts to reduce costs and foster an economy from the ground up.”

In addition to the enhancements to PSLF, the Biden-Harris Administration has also implemented further improvements to the program to facilitate borrower participation. Starting July 1, 2024, the PSLF Program is entirely managed by the Department through StudentAid.gov, rather than by a singular specialized loan servicer. For the first time, borrowers can handle all aspects of their PSLF journey on StudentAid.gov, including form submission and progress tracking towards forgiveness. These updates will streamline the process for borrowers and expedite the processing of PSLF forms. These improvements have been underway since the Administration’s inception as part of the Department’s endeavors to overhaul loan servicing and introduce significant enhancements to all its loan forgiveness programs, including PSLF.

A track record of unprecedented borrower support

The Biden-Harris Administration has taken groundbreaking steps to alleviate the student debt burden and ensure that student loans do not hinder educational and economic opportunities for students and families. The Administration secured a $900 increase to the Pell Grant—the largest increase in a decade—and finalized new regulations to shield borrowers from career programs that result in unmanageable debts or inadequate earnings. The Administration is continuing its efforts to promulgate debt relief regulations under the Higher Education Act, with expected regulations this autumn.

In addition to the relief under PSLF, the Biden-Harris Administration has also sanctioned:

· $51 billion for over 1 million borrowers through administrative adjustments to income-driven repayment payment counts. These adjustments have brought borrowers closer to forgiveness and addressed persistent concerns regarding forbearance mismanagement by loan servicers.

· $28.7 billion for more than 1.6 million borrowers defrauded by their educational institutions, faced with sudden closures, or covered by related court settlements.

· $14.1 billion for over 548,000 borrowers with total and permanent disabilities.

· $5.5 billion for 414,000 borrowers through the SAVE Plan.