The Biden administration has now canceled loans for more than 1 million public workers

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The Biden administration has now canceled loans for more than 1 million public workers
Joe BidenUnited States GovernmentGeneral News
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A student loan cancellation program for public workers has granted relief to more than 1 million Americans — up from just 7,000 who were approved before it was updated by the Biden administration two years ago.

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President Joe Biden announced the milestone on Thursday, saying his administration restored a promise to America’s teachers, firefighters, nurses and other public servants. He celebrated it even as his broader student loan plans remain “For too long, the government failed to live up to its commitments,” Biden said in a statement. “We vowed to fix that, and because of actions from our administration, now over 1 million public service workers have gotten the relief they are entitled to under the law.”

The Public Service Loan Forgiveness program was created in 2007, promising college graduates that the remainder of their federal student loans would be zeroed out after 10 years working in government or nonprofit jobs. But starting in 2017, the vast majority of applicants were rejected because of complicated and little-known eligibility rules.

In total, the administration says it has now canceled $175 billion for about 5 million borrowers. Public Service Loan Forgiveness accounts for the largest share of that relief, while others have had their loans canceled throughfor 40 million Americans. Biden ordered his Education Department to try again using a different legal justification, but a judge in Missouri temporarily halted the plan after several Republican states challenged it.

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