WASHINGTON–The Biden Administration has erased another $5.8-billion in federal student loan debt, this time for nearly 78,000 borrowers who work in the public sector, including teachers, firefighters and others.
To date, the administration has canceled $143.6 billion in loans for nearly four-million borrowers through various actions, fixes and federal relief programs.
“That’s the largest amount of student debt eliminated since the government began backing loans more than six decades ago, but it’s still far less than President Biden’s initial proposal, which would have canceled up to $400 billion in debt for 43 million borrowers but was blocked by the Supreme Court,” the New York Times reported.
The latest debt elimination by the Biden Administration applies to government and nonprofit employees in the Public Service Loan Forgiveness program, which can eliminate their balance after 120 payments.
‘Logistical Troubles’
“For too long, our nation’s teachers, nurses, social workers, firefighters and other public servants faced logistical troubles and trap doors when they tried to access the debt relief they were entitled to under the law,” Education Secretary Miguel Cardona said in a statement.
According to the New York Times, since October 2021 more than 871,000 public service and nonprofit workers have received debt cancellation totaling $62.5 billion; before that, just 7,000 had reached forgiveness since the program was created more than 15 years ago.
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