(NewsInsights.org) – The Biden Administration announced the approval of $5.8 billion worth of student loan debt relief for the Public Service Loan Forgiveness (PSLF) program on Thursday, March 21. The new round targets workers like teachers, nurses, firefighters, police officers, and others working in public service. The allotment will provide debt relief for up to 77,700 borrowers.
Secretary of Education Miguel Cardona explained how the administration corrected several problems with the program that acted as “trap doors” when people previously tried to access the benefits. Prior to the Biden administration, only about 7,000 borrowers had received loan forgiveness. Now, with administrative changes in place, more than 871,000 borrowers have qualified for loan forgiveness, totaling over $62.5 billion since October 2021.
Additionally, President Joe Biden emailed 380,000 public workers, thanking them for their community service and notifying them that they are within 24 qualifying payments of receiving PSLF debt relief if they continue in their positions. In the email, he wrote, “The Public Service Loan Forgiveness Program is an important way to bring more Americans into public service and help them get out from under the burden of student loan debt.”
Biden went on to say his administration found the program had failed many public workers when he took office, and he had vowed to repair it. He told the workers he believed his administration had accomplished that goal, allowing them to seek forgiveness of their remaining student loans through the program.
With the PSLF program announcement, the administration calculated it had provided loan forgiveness to as many as 3.96 million citizens worth approximately $143.6 billion. That figure includes $45.6 billion to nearly a million borrowers through Income-Driven Repayment (IDR) plans, $22.5 billion to over 1.3 million borrowers defrauded by schools closing unexpectedly or covered by court settlements, and $11.7 billion to more than half a million borrowers with permanent and total disability.
A December New York Times/Sienna poll showed 72% of voters between 18 and 29 disapprove of Biden’s handling of the Gaza conflict. Using the good news about student debt relief, the president might hope to win back some of the lost goodwill from the younger voter segment that was crucial to his 2020 win.
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