Points at Glance
- The Biden administration approved billions of dollars of loans under the expanded PSLF program.
- Under the temporary expansion of the PSLF program, the education department has approved $8.1 billion of student debt loan cancellation.
The Education Department has approved student debt loan cancellation of $8.1 billion for almost 1450000 borrowers in nine months under a temporary expansion of the Public Service Loan Forgiveness (PSLF) program.
The Biden administration approved billions of dollars of loans under the expanded PSLF program. In addition, it was announced that the borrowers who commit to work for at least 10 years for non-profit or government organizations could get their federal student loan forgiven through the PSLF program.
One of the various actions taken by Education Secretary Miguel Cardona aimed to cancel student loan debt for specific borrowers trapped in dysfunctional repayment plans because of the misguided technical rules and mismanagement by loan servicers or for borrowers defrauded by for-profit school colleges.
The public service loan forgiveness program was a promise made by the government in 2008 to provide debt relief to nurses, teachers, and others who work in public sector jobs.
We owe it to the millions of union workers who have kept our nation running during these unprecedented, challenging times,” Pressley said. “Student debt cancellation is core to any and equitable economic recovery from this pandemic.”
Biden Considers Broader Student Loan Forgiveness
The Education Department is working on overhauling the regulations of PSLF to enact more permanent changes, but any final regulations would not be effective until 2023.
Any wide-scale student loan forgiveness would likely have a fairly low cap, as Biden has rejected calls to cancel $50,000 or more in student loan debt. Reports state that administration officials may impose income restrictions, as well.
