The Education Department will cancel $1.2 billion in student debt for approximately 35,000 borrowers.

• The Biden administration declared that it would eliminate $1.2 billion in student debt for approximately 35,000 individuals.
• The Public Service Loan Forgiveness program's modifications by the U.S. Department of Education have resulted in relief.

The Biden administration has announced the cancellation of $1.2 billion in student debt for 35,000 workers due to recent improvements in a popular debt relief program for public service workers.

U.S. Secretary of Education Miguel Cardona stated that the Biden-Harris administration is delivering on its historic efforts to reduce student debt by making much-needed improvements to the Public Service Loan Forgiveness Program.

The PSLF program, enacted by President George W. Bush in 2007, enables eligible not-for-profit and government workers to have their federal student loans forgiven after ten years of repayment. However, the program has faced numerous issues, resulting in only a small number of borrowers receiving loan cancellation. Frequently, borrowers believed they were on track for loan forgiveness, only to discover later that they did not meet the qualifications due to technicalities such as loan type or repayment plan.

The Biden administration granted borrowers a chance to qualify for loan forgiveness if they had been making payments and working for an eligible employer. Borrowers could consolidate their loans and receive credit for ineligible periods through a waiver opportunity that ended in October 2022.

Under PSLF, the Education Department has so far cleared $69.2 billion in student debt for 946,000 borrowers.

During President Joe Biden's tenure, the number of people receiving relief through the program increased to 7,000.

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