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Topic subjectDept of Education forgives more than 110,000 public service loans
Topic URLhttp://board.okayplayer.com/okp.php?az=show_topic&forum=4&topic_id=13458854&mesg_id=13459632
13459632, Dept of Education forgives more than 110,000 public service loans
Posted by PimpTrickGangstaClik, Wed May-04-22 03:11 PM

Temporary changes to the troubled Public Service Loan Forgiveness Program have resulted in more than 110,000 people with student debt getting around $6.8 billion in relief.

The new figures from the U.S. Department of Education show how many borrowers are benefiting from the policy fixes announced by the Biden administration last year. Hundreds of thousands more could still see their debt discharged as part of the effort. The average amount of debt reduction per borrower is close to $60,000, according to the Education Department.

The public service loan forgiveness was signed into law by then-President George W. Bush in 2007, and allows nonprofit and government employees to have their federal student loans canceled after 10 years, or 120 payments. The Consumer Financial Protection Bureau estimates that one-quarter of American workers could be eligible.

However, the program has been plagued by problems, making people who actually get the relief a rarity.

Borrowers often believe they're paying their way to loan cancellation only to discover at some point in the process that they don't qualify, usually for confusing technical reasons. Lenders have been blamed for misleading borrowers and botching their timelines.

The reforms under the Biden administration include reassessing borrowers' timelines and counting some payments that were previously ineligible because, say, a borrower was unwittingly in a nonqualifying repayment plan.

How can I benefit from the new rules?
To begin, you want to act quickly, said Mark Kantrowitz, a higher education expert.

That's because the Biden administration's new rules for public service loan forgiveness are slated to expire on Oct. 31.

If you have either a Federal Family Education Loan (FFEL) or a Federal Perkins Loan, which don't normally count for public service loan forgiveness but now temporarily do, you'll need to consolidate those into direct loans with your servicer.