The Biden administration is adding $7.4 billion in debt cancellation for a total of $153 billion, with public service workers — including those in healthcare — again eligible in the latest round of relief.
The Biden-Harris administration announced the additional $7.4 billion in relief for 277,000 more Americans April 12. The investment comes on the heels of an additional $5.8 billion in student loan debt relief for 77,700 public service workers, including those in healthcare, announced in March.
The latest round of debt cancellation is for borrowers enrolled in several federal programs: the Saving on a Valuable Education (SAVE) Plan, income-driven repayment plans, and those receiving Public Service Loan Forgiveness. Education Secretary Miguel Cardona said discharges worth $3.6 billion in relief will go to 207,000 borrowers under the SAVE plan, Bloomberg reports.
The Public Service Loan Forgiveness program is reserved for governmental employers and nonprofit organizations, and public health is a qualifying public service with eligibility for physicians, nurse practitioners and nurses in clinical settings. Forty-six hundred public servants will see loans canceled in this latest round, according to Bloomberg.
Combined, the Biden-Harris administration has moved to cancel debt for nearly 900,000 public service workers. Days before the latest round, the Biden administration previewed a plan to extend debt relief to 30 million Americans by automatically canceling debt for borrowers otherwise eligible for relief through the SAVE plan, Public Service Loan Forgiveness, or other forgiveness opportunities who have not successfully applied for assistance.