The Biden administration has announced significant student loan forgiveness for thousands of borrowers who have served in public service roles, totaling nearly $6 billion in debt relief.
Overview
The White House revealed its plan to cancel student debt for 78,000 borrowers enrolled in the Public Service Loan Forgiveness (PSLF) program. This program aims to forgive debt for government and nonprofit workers after 10 years of qualifying payments. The relief is a result of improvements made to the PSLF program, including a limited-time waiver that allowed previously ineligible payments to count towards forgiveness.
Statement from Education Secretary
Education Secretary Miguel Cardona highlighted the significance of this announcement, emphasizing the challenges faced by public servants in accessing the debt relief they are entitled to under the law. He stated that the administration is committed to fixing existing barriers and expanding opportunities for Americans.
Biden’s Communication with Borrowers
President Biden will personally email impacted borrowers to inform them of the debt relief. Additionally, he will reach out to an additional 380,000 borrowers who are nearing loan forgiveness through PSLF. The administration aims to ensure that borrowers are aware of the benefits of PSLF and the impact debt relief can have on individuals and families.
Context and Additional Actions
This relief initiative follows a series of targeted actions by the Education Department to provide relief to borrowers. In February, the department announced $1.2 billion in debt relief for 153,000 borrowers through the new SAVE income-driven repayment plan. However, challenges persist as borrowers navigate the return to repayment, with issues such as delayed billing statements from federal student loan servicers.
Future Plans
The Education Department is also working on broader debt relief efforts under the Higher Education Act of 1965. After the Supreme Court rejected its initial plan, the department is expected to release a new proposal in the coming months.
Share Your Story
Individuals who have received student loan forgiveness are encouraged to share their experiences with the reporter via email at asheffey@businessinsider.com.
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