Biden forgives $5.8 billion in student loan debt for public servants
President Biden continued his war against towering student loan debt, canceling another $5.8 billion for 78,000 public service workers.
Biden's Student Loan Debt Cancellation and Its Impact on Floridians
President Joe Biden recently announced the cancellation of $5.8 billion in federal student loan debt for 78,000 public sector workers, including teachers, nurses, and firefighters. This move is part of the Public Service Loan Forgiveness (PSLF) program, which forgives the remaining balance on the debt for individuals who have been paying down their loans for a decade or more while employed full-time by an eligible employer.
Impact on Floridians:
- This cancellation is particularly significant for Floridians, as the state has the third-highest amount of federal student loan debt in the country, with a total balance of $103.3 billion for 2.7 million borrowers as of September 2023.
- The average federal student loan for Florida borrowers was $38,065, making it the fourth highest in the U.S..
Eligibility for Loan Forgiveness:
- To qualify for the PSLF program, individuals must be employed by an eligible government or non-profit organization, work full-time for that agency or organization, have Direct Loans, repay their loans under an income-driven repayment plan or a 10-year Standard Repayment Plan, and make a total of 120 qualifying monthly payments.
Biden Administration's Forgiveness Efforts:
- The Biden Administration has approved nearly $138 billion in targeted relief for nearly 4 million borrowers, including improvements to income-driven repayment, fixes to the PSLF program, relief for borrowers with a total and permanent disability, and more.
In summary, the recent student loan debt cancellation by President Biden has significant implications for Floridians and is part of broader efforts to provide relief to borrowers across the country.