Federal loan forgiveness program hits major milestone
U.S. Secretary of Education Miguel Cardon announces a milestone in the Public Service Loan Forgiveness program in Atlanta on Oct. 17, 2024. (FOX 5)
ATLANTA - U.S. Secretary of Education Miguel Cardona visited Atlanta on Thursday to announce an additional $4.5 million in funding for the Public Service Loan Forgiveness (PSLF) program. The funding marks a significant milestone for the program, which aims to provide relief to public service workers burdened by student loans.
The Biden administration has reported that it has canceled $175 billion in student loans for approximately 5 million borrowers through various existing programs. The PSLF program accounts for the largest portion of this relief, with other cancellations achieved through income-driven repayment plans and a 1994 rule that offered aid to students defrauded by their schools.
Originally established in 2007, the PSLF program promised to forgive the remainder of federal student loans for college graduates who completed 10 years of work in government or nonprofit jobs. However, starting in 2017, most applicants faced rejection due to complicated and little-known eligibility criteria.
Since the Biden administration's updates to the program two years ago, more than 1 million Americans have received loan forgiveness, a significant increase from the 7,000 approvals granted before the reforms.