March 28, 2022
By: Freedom to Prosper Team
The Biden Administration announced changes to the Public Service Loan Forgiveness (PSLF) program, and since October, the Department of Education has identified 100,000 student loan borrowers who are now eligible for cancellations under the PSLF program.
In the past, the program was notoriously difficult to navigate and few applicants ever received loan forgiveness. The program is now benefitting more borrowers than ever now that previous requirements have been waived until October 2022.
To be eligible, borrowers must have fulfilled monthly payments for ten years and work for a qualifying public service employer. Examples of qualifying jobs include teachers, fire responders, nurses, and service members. The waiver enables borrowers, regardless of original loan type or repayment plan, to receive loan forgiveness.
The Department of Education is already reviewing and updating the number of qualifying payments for many borrowers without further action. However, those with Federal Family Education Loans will have to consolidate their loans into Direct Loans, and borrowers who already have Direct Loans must make sure that they have submitted employment certification forms for past repayment periods. Borrowers can make these changes until October 31, 2022 to qualify under the temporary waiver.
The reimbursement for 100,000 new eligible borrowers is estimated to total $6.2 billion, bringing the Biden Administration’s total to $16 billion in student debt cancellation and granting more American families the freedom to prosper.
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