Biden-Harris Administration Forgives $74 Billion in Student Loans

Landmark Achievement: Over a Million Public Service Workers Benefit from Loan Forgiveness

In a significant development for public service employees, more than 1 million workers have had their student loans forgiven through the Public Service Loan Forgiveness (PSLF) program, as announced by the White House on Thursday.

The PSLF program, which had previously faced operational issues, has been revitalized under the Biden-Harris administration. This overhaul has resulted in the cancellation of $74 billion in student debt for public service workers, including members of the American Federation of State, County, and Municipal Employees (AFSCME).

AFSCME played a pivotal role in collaborating with the administration to address the shortcomings of the PSLF program. Designed to encourage careers in public service, the program promises to forgive the remaining balance of federal direct student loans after a decade of qualifying payments.

Before the current administration's intervention, the program was largely ineffective, with only 7,000 borrowers having received forgiveness. In contrast, in 2017, then-President Donald Trump proposed eliminating the program.

The Biden-Harris administration's dedication to supporting public service workers has made a tangible difference. Stories of union members experiencing debt relief and newfound financial freedom are shared by AFSCME. Explore these narratives here, here, and here.

The reformation of the PSLF program is a testament to the Biden-Harris administration's ongoing efforts to deliver for public service workers. However, the future of this initiative hangs in the balance, as a potential second term for Trump could threaten its existence. Trump’s Project 2025 proposes the termination of the PSLF program.

If implemented, such changes could impact nearly 3.6 million public service workers, who would face $250 billion in debt without the relief previously anticipated.

Furthermore, Project 2025 aims to dismantle various other freedoms, including those related to unions and contractual agreements. More information can be found here.