May 12, 2022
By: Freedom to Prosper Team
The U.S Department of Education announced that it will cancel $6.8 billion in student debt for more than 110,000 borrowers through its Public Service Loan Forgiveness Program.
On average, $60,000 worth of debt per borrower will be canceled after President Biden made changes to the program. Nonprofit and government employees now have the option of their federal student loan debt being canceled after 10 years or 120 payments.
President Biden’s temporary changes to the Public Service Loan Forgiveness Program has the potential to benefit hundreds of thousands more students and help cancel their mounting debt as well. According to the Consumer Financial Protection Bureau, an estimated one-quarter of American workers could be eligible for this program.
The reforms, made under the Biden Administration, reassess borrowers’ timelines and count some payments which were previously ineligible due to borrowers’ unknowingly being in a non-qualifying repayment plan.
Participants of the program will greatly benefit from President Biden’s targeted efforts to provide significant relief to those in the public sector who tend to experience more difficulty paying off their debt compared to other professions. Building upon this momentum will be critically important towards securing a debt-free future for all students, helping millions of students prosper.
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