WASHINGTON: The Biden administration is cancelling federal student loans for another 55,000 workers through an existing programme known as Public Service Loan Forgiveness.
The Education Department’s announcement Friday targets teachers, nurses, service members, law enforcement officials and others who’ve reached eligibility through the programme, which promises to erase loans after 10 years of work in government or nonprofit jobs.
The USD 4.28 billion in relief is expected to be the final round of public service loan forgiveness before President Joe Biden leaves office in January. After failing to deliver his promise of widespread loan cancellation, Biden has instead focused on expanding loan relief through programmes that were created before his presidency.
Under Biden, the Education Department loosened the rules for Public Service Loan Forgiveness, which previously had a 99 per cent rejection rate amid burdensome rules and widespread confusion over eligibility requirements.
With the latest round of relief, Biden has now canceled an unprecedented USD 180 billion in federal student loans through existing programmes, covering 4.9 million Americans. That includes USD 78 billion for roughly 1 million borrowers through PSLF.