In SummaryAccording to the Department of Education, it could alleviate at least 550,000 borrowers working in the government.
On Oct. 6, the United States Department of Education announced implementing new changes to the Public Service Loan Forgiveness Program.
According to the Federal Student Aid website, in order to qualify for the PSLF program, people must “be employed by a U.S. federal, state, local, or tribal government or not-for-profit organization; work full-time for that agency or organization; have Direct Loans (or consolidate other federal student loans into a Direct Loan); repay your loans under an income-driven repayment plan; and make 120 qualifying payments.”
The agency could be bringing relief to at least 550,000 borrowers, who are working in the government and non-profit sectors, according to CNN. Additionally, of those borrowers, around 22,000 will be immediately eligible for student loan forgiveness.
“These changes are important steps toward a better and stronger PSLF program, one that will move away from the current situation in which too few borrowers receive forgiveness, and too many do not receive credit for years of payments they made because of complicated eligibility rules, servicing errors or other technicalities,” the agency’s memo said. “The Department is also working to identify further improvements to ensure public servants get the relief they deserve, including partnerships with employers and revising regulations. These actions are informed by the more than 48,000 comments the Department received on a request for information on improving PSLF issued over the summer.”
The memo also states the Limited PSLF Waiver will continue through October 31, 2022.
“I’m glad Secretary Miguel Cardona is undertaking this major overhaul of the Public Service Loan Forgiveness program to fulfill our promises to borrowers. Teachers, firefighters, and other public servants deserve relief from the burden of student debt,” Senator Elizabeth Warren said on Twitter.