WASHINGTON — The Biden administration announced a milestone Thursday in its effort to eliminate Americans’ student debt: it has helped more than one million public-service borrowers.
through Department of Education Public Service Loan Forgiveness Programthe administration approved nearly $4.5 million in additional student loan relief for more than 60,000 borrowers, bringing total assistance to more than 1 million people through the program to $74 million.
That brings the total amount of student debt under the administration to $175 billion for more than 4.8 million borrowers during President Joe Biden’s nearly four years in office, the department said.
The Department of Education said that before Biden’s presidency, only 7,000 public employees received student debt relief through the Public Service Loan Forgiveness Program. In a statement, Education Secretary Miguel Cardona said the program had previously been “riddled with dysfunction,” adding that “countless public servants were trapped in making payments on loans that should have been forgiven.”
Cardona added that “a career in public service is not only a noble calling, but also a sure way to be debt free within ten years.”
“Think about it, from 7,000 to 1 million,” Cardona told reporters Wednesday as he watched the announcement: “That’s an increase of over 14,000% in less than four years. Let me say again that we increased the number of public servants who received amnesty by 14,000%.
Those eligible for the program include nurses, social workers, teachers, first responders, military personnel and other government employees.
The Department of Education explained that the program used to be administered by a single specialty loan servicer, but is now entirely administered by the department, which “makes it easier for borrowers to participate in the program,” it said.
The milestone comes after the administration faced legal challenges related to a number of student debt relief proposals and roadblocks imposed by court orders. For example, the Supreme Court ruled last year that the administration’s student loan forgiveness program could not go into effect. The plan would benefit 43 million borrowers by eliminating up to $20,000 in debt, potentially costing more than $400 billion.
In a statement Thursday, Vice President Kamala Harris celebrated the administration efforts to eliminate student loans“While Republican elected officials will do everything in their power to prevent millions of their constituents from receiving this much-needed economic aid, I will continue our work to lower costs, make higher education more affordable, and ease the burden of student debt. I am committed to building an economy that works for every American.” I am fully committed to doing what is.”
Caroline Kenny contributed.