Biden Administration Cancels $1.2 Billion in Student Loan Debt for 35,000 Borrowers. Are You One of Them? [CNET]

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Another $1.2 billion in student debt relief is on the way for 35,000 teachers, nurses and other public service workers enrolled in the Public Service Loan Forgiveness program, the Biden-Harris administration announced today.

This brings total loan forgiveness under the current administration to $168.5 billion across approximately 4.76 million borrowers. Of this number, $69.2 billion in relief has been granted to 946,000 borrowers in the PSLF program.

Today’s round of borrowers receiving forgiveness include those who took advantage of the limited PSLF waiver that relaxed some requirements, as well as those who benefited from regulatory changes.

The Department of Education paused PSLF forgiveness applications in May while it worked to move PSLF accounts to in-house management. For some borrowers, this meant a change in loan servicers, while others remained with the primary PSLF servicer, MOHELA.

The PSLF program allows teachers, nurses, firefighters and other eligible public service members to receive forgiveness for qualifying federal student loans after working for 10 years (120 payments) in a qualifying job. The program was launched in 2007 but was difficult to navigate, with nearly 99% of borrowers denied relief, according to a 2020 report. The PSLF program was overhauled in 2021 to help cancel debt for borrowers previously denied relief. In 2023, the Department of Education enacted permanent changes to the program to offer more flexibility for eligible borrowers.

While the PSLF program offers one path to debt relief, the White House cannot currently cancel any additional student debt through its Saving on a Valuable Education plan, SAVE. In June, two federal courts filed injunctions against SAVE, preventing the administration from approving new forgiveness through the income-driven repayment plan. 

Since then, the administration has won an appeal allowing it to lower monthly student loan payments for millions of Americans enrolled in SAVE. Debt forgiveness efforts through SAVE currently remain on hold.

Courtney Johnston is a senior editor leading the CNET Money team. Passionate about financial literacy and inclusion, she has a decade of experience as a freelance journalist covering policy, financial news, real estate and investing. A New Jersey native, she graduated with an M.A. in English Literature and Professional Writing from the University of Indianapolis, where she also worked as a graduate writing instructor.