Biden administration expands student loan forgiveness eligibility By Reuters
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WASHINGTON, (Reuters) – The Biden administration announced Wednesday changes to federal student loan forgiveness programs that will allow more public sector employees, as well as military personnel, to get relief from their education debts.
Officials stated that the new U.S. Department of Education policies would impact approximately 550,000 borrowers, and provide them with an additional two years of forgiveness.
U.S. Secretary for Education Miguel Cardona stated that teachers, nurses, first responders and service personnel have been there to support us, especially in the face of pandemic.
These public servants should, he stated, be entitled to loan forgiveness. Cardona stated that while the system had not fulfilled its promise, it is now changing for many borrowers who are serving their community and country.
Public Service Loan Forgiveness Program, (PSLF), allows such workers to request to cancel their student loans after 10 years of consistent payment and public service. However, borrowers need to apply and may face restrictions or roadblocks.
The department announced Wednesday’s overhaul to streamline the application process. It will also review any applications previously denied or subject to processing errors. This will allow more people to apply for relief.
Additionally, 22,000 borrowers can use the program with “consolidated” loans that were previously not eligible. If they sign certain forms, 27,000 additional borrowers might also be eligible for the program.
National Education Association (an education union representing over 3 million teachers, and others who would benefit from this program), praised the new changes. The National Education Association praised the improvements, saying that it was a good step to keep the PSLF promise and eliminate the student loans of educators who fulfilled their obligations to their communities.
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