According to the US Education Department, another 30,000 borrowers will qualify for Public Service Loan Forgiveness, which erases student loan debt for public servants who make monthly payments for ten years.
A little over a decade ago, a program called PSLF was created to assist borrowers in the education, health care, and emergency services fields.
However, after being chastised for its strict and unclear rules, which resulted in a 98% denial rate for applications, the Biden administration extended the program in October. Due to the temporary adjustments, borrowers could get credit for loan repayments that were previously ineligible.
According to CNN, around 100,000 people are now eligible for PSLF, which will result in a total of $6.2 billion in student debt reduction. The Biden administration predicted that approximately 550,000 borrowers would benefit from the revamped program when it was announced last fall.
“Our nation’s public service workers must be able to rely on the promise of Public Service Loan Forgiveness. The Biden-Harris administration is delivering on that promise by helping more and more eligible borrowers get their loan balances forgiven,” Education Secretary Miguel Cardona said in a statement. “The PSLF announcement made today means more of our dedicated teachers, nurses, first responders, service members, and many other public service workers will get meaningful relief.”
According to officials, not all qualified borrowers have been notified of their debt relief, and it’s unclear when they will be.
Since March 2020, when Donald Trump signed the CARES Act, borrowers have not been compelled to pay their federal student loans. On May 1, the current administration is anticipated to end the restriction.
So far, Biden has yet to fulfill his campaign promise to cancel at least $10,000 of student loan debt per borrower.
According to reports, 43 million Americans have student loan debt worth more than $1.7 trillion.
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