Public servant student loan waiver program gets a facelift
The US Department of Education on Wednesday began modifying its civil service loan forgiveness program, in a makeover that it says will save 22,000 borrowers from having to repay their loans, for a total of of $ 1.74 billion. Over the course of a year, another 27,000 borrowers could have their loans, totaling $ 2.82 billion, become eligible for forgiveness.
PSLF began in 2007 with the aim of rewarding students who work in sectors of the public service, including local and federal government agencies and 501 (c) (3) nonprofit organizations. Borrowers can submit their loans for remittance to the Ministry of Education after making 120 qualifying payments, which is equivalent to 10 years of monthly payments. However, since 2008, those who submitted have had their requests denied at a rate of 98.8%.
To cancel more student loans, the Department of Education will first create a limited PSLF exemption that counts all past student loan payments toward the goal of 120 payments. This waiver lasts until October 31, 2022. Military service members who have student loans will get their months of active service in their PSLF. The application process will also be streamlined and the ministry will review previously refused applications and correct any errors made in the review process.
The ministry estimates that with the new changes, more than 550,000 borrowers who have already consolidated their loans will see two more years added to their progress towards canceling their loans.
The Ministry of Education has dischargedin August for borrowers with total and permanent disability. In March and then in June, he also forgave a total of $ 1.5 billion for students who had borrowed money from some for-profit schools.