Student Loan Forgiveness Application Update

Biden Administration Announces Cancellation of $12 Billion in Student Debt

Public Service Loan Forgiveness Program Overhauled

Millions of Borrowers to Benefit from New Measures

Today, the Biden-Harris Administration announced sweeping changes to the Public Service Loan Forgiveness (PSLF) Program, resulting in the automatic discharge of $12 billion in student debt for 125,000 borrowers. This historic move is part of a broader effort to provide relief to borrowers who have diligently pursued careers in public service.

Federal Student Aid (FSA) has implemented regulatory modifications to the PSLF Program, expanding eligibility and simplifying the forgiveness process. For example, the changes allow borrowers to receive credit for past payments even if they were made on the wrong repayment plan or through the wrong loan servicer. Additionally, time spent in certain forbearance periods will now count towards forgiveness.

President Biden emphasized the importance of providing support to public servants, stating, "Borrowers who have served their communities and our country are entitled to the full benefits of the PSLF Program." He added, "Today's actions will help deliver on that promise." The changes are expected to benefit nearly 500,000 additional borrowers who will become eligible for forgiveness within the next five years.

In a further move, the Biden Administration has also announced the approval of $12 billion in student debt cancellation for almost 800,000 borrowers. This relief will be provided to borrowers who worked in public service for at least 10 years and met certain other criteria. The online application process for this relief will open in the coming weeks.

The Biden Administration's student loan forgiveness plan has garnered praise from advocates and borrowers alike. The changes to the PSLF Program and the targeted debt cancellation will significantly reduce the financial burden faced by many public servants. As a result, it is expected that more individuals will be encouraged to pursue careers in fields such as education, healthcare, and law enforcement.