Education Dept. forgives student loans of more than 110,000 people in public service. - CNBC
U.S. Education Secretary Miguel Cardona delivers remarks at the department's Lyndon Baines Johnson Building in Washington, D.C., on Jan. 27, 2022.Temporary changes to the troubled Public Service Loan Forgiveness Program have resulted in more than 110,000 people with student debt getting around $6.8 billion in relief.
The new figures from the U.S. Department of Education show how many borrowers are benefiting from the policy fixes announced by the Biden administration last year. Hundreds of thousands more could still see their debt discharged as part of the effort. The average amount of debt reduction per borrower is close to $60,000, according to the Education Department.
The public service loan forgiveness was signed into law by then-President George W. Bush in 2007, and allows nonprofit and government employees to have their federal student loans canceled after 10 years, or 120 payments. The Consumer Financial Protection Bureau estimates that one-quarter of American workers could be eligible.