US Department of Education overhauls Public Service Loan Forgiveness program

[LetMyPeopleVote]

This is a good set of changes that the Biden administration can adopt without legislation

Link to tweet

The US Department of Education announced major changes Wednesday to a federal student loan forgiveness program that the agency says could bring relief to more than 550,000 borrowers working in government and nonprofit sectors, including around 22,000 borrowers who will automatically be eligible for student loan forgiveness without needing to take additional steps.

Through the Public Service Loan Forgiveness program, the government forgives remaining federal student loan debt for qualifying public-sector workers after they have made monthly payments for 10 years.

But the program has long been criticized for being difficult to navigate, with borrowers receiving little help from their loan servicers, the companies that handle billing and other services. Many borrowers have said they found out they weren't eligible for forgiveness only after making what they thought were a decade's worth of qualifying payments.

In an announcement Wednesday, the Education Department said it will "restore the promise" of the debt relief program through a series of actions that will be implemented "over the coming months," according to an agency memo.

Joe Biden does not have the power to cancel student debt except in cases of fraud or under this program set forth above

[gab13by13]

1. President Joe Biden doesn't have to go through Congress

to cancel student debt.

[Budi]

2. I am rather stunned by the lack of knowledge of some pols who sit in positions of power, ...

...and repeat, wrongly to the public that Biden can Exec Order it all away.
They give away their lack of experience.
Its embarassing.

This program will hopefully help lessen the disappointment of many who listen to & believe those flat out falsehoods being told to them by politicians, about something that affects loan borrowers personally.

Thanks President Biden.

[LetMyPeopleVote]

3. 100,000 student loan borrowers may now be eligible for debt cancellation

This makes me smile

Link to tweet

Almost 100,000 people are now eligible to have their student loan debt canceled, the Department of Education announced Wednesday.

The cancellations apply for people affected by changes in October 2021 to the Public Service Loan Forgiveness program, or PSLF, last year. According to CNN, the total amount of cancellations could reach $2.6 billion. PSLF forgives the remaining balance on federal student loan debt after an eligible public service worker has made 120 monthly payments while working for a qualified employer.

The program was created about 15 years ago but, according to CNN, a very small percentage of people who applied received forgiveness before 2021. Last year, President Joe Biden announced the program would offer expanded eligibility through Oct. 31, 2022, to allow borrowers who previously didn’t qualify to apply for the relief.

The Department of Education is currently in the process of notifying borrowers who may be eligible to apply.

[llmart]

4. I'd like to know more details on just what "expanded eligibility" means.

I used to handle the PSLF forms for faculty at a university. At the time, a teacher had to be considered full time to be eligible. We had some instructors who worked almost as many hours as a full time professor but they were not eligible because the university did not consider them full time.