The Public Service Loan Forgiveness program aims to eliminate remaining balances on Direct Loans after borrowers have made 120 qualifying monthly payments.
The Public Service Loan Forgiveness program aims to eliminate remaining balances on Direct Loans after borrowers have made 120 qualifying monthly payments.
More than 615,000 student loan borrowers received debt cancellation through the Public Service Loan Forgiveness program since 2021, following a temporary expansion of eligibility by the United States administration under President Joe Biden.
The PSLF program is a federal student loan forgiveness plan that aims to eliminate remaining balances on direct loans after borrowers have made 120 qualifying monthly payments.
Individuals working full-time in various government or not-for-profit organizations within the United States may qualify for the program, as reported by Erudera.com.
In a press release issued on May 8, the US Department of Education announced that an additional 6,000 borrowers enrolled in the PSLF program would soon have their loans canceled, resulting in a significant $42 billion in federal student debt relief.
US Secretary of Education Miguel Cardona emphasized the administration’s commitment to fixing the broken student loan system and fulfilling the promise of Public Service Loan Forgiveness.
“Since day one, the Biden-Harris Administration has worked relentlessly to fix a broken student loan system, including by making sure we fulfill the promise of Public Service Loan Forgiveness for those who have spent a decade or more serving our communities and our country,” he said.
Cardona then expressed the importance of the program in transforming the lives of individuals by the hundred thousands and underscored the need to overcome partisan obstacles that have hindered its progress.
According to the Department of Education, the Trump administration approved debt relief for only 7,000 student loan borrowers under the PSLF program.
The program faced numerous challenges and had a notably low approval rate prior to 2021, prompting the Biden administration to implement reforms.
Furthermore, the department plans to enhance the PSLF Help Tool, which will facilitate digital applications for the program.
These improvements are expected to eliminate the need for borrowers to print, sign, and submit their application forms via fax or mail. Previously, borrowers were also required to obtain employer signatures on the printed form.
Federal Student Aid Chief Operating Officer Richard Cordray described the enhanced tool as a significant step toward modernizing and simplifying the loan forgiveness process.
