By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
AmextaFinanceAmextaFinance
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
AmextaFinanceAmextaFinance
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
AmextaFinance > Finance > 662,000 Borrowers Get Student Loan Forgiveness Under Improvements
Finance

662,000 Borrowers Get Student Loan Forgiveness Under Improvements

News Room
Last updated: 2023/09/07 at 3:12 PM
By News Room
Share
5 Min Read
SHARE

Hundreds of thousands of borrowers have received student loan forgiveness under initiatives designed to improve Public Service Loan Forgiveness, according to the Biden administration.

Contents
Student Loan Forgiveness Under PSLF WaiverStudent Loan Forgiveness For Public Servants Under IDR Account AdjustmentNew PSLF Rules May Expand Student Loan ForgivenessFurther Student Loan Forgiveness Reading

Public Service Loan Forgiveness, or PSLF, is a key federal student loan forgiveness program that can eliminate a borrower’s federal student loan debt after 120 “qualifying payments” — the equivalent of 10 years. But the PSLF program has long been plagued by poor administration and inadequate oversight resulting in mistakes, rejections, and dismally low approval rates that never exceeded the low single digits.

But after the Biden administration initiated a series of improvements, student loan forgiveness approvals under PSLF have skyrocketed. “The Biden-Harris Administration has already approved… $45.7 billion for 662,000 public servants through improvements to Public Service Loan Forgiveness (PSLF),” said the Education Department in a statement on Tuesday. And more loan forgiveness is coming as these initiatives continue.

Here’s what’s happening.

Student Loan Forgiveness Under PSLF Waiver

The Biden administration launched the first PSLF improvement, called the Limited PSLF Waiver, in 2021. That one-time initiative relaxed the rules governing qualifying PSLF payments, broadening the definition of what could count toward loan forgiveness under the program.

Previously, only payments made on Direct federal student loans under a 10-year Standard or income-driven repayment (IDR) plan could count toward loan forgiveness. But the Limited PSLF Waiver allowed almost any period of repayment on any federal student loan to count as far back as October 2007, when PSLF was first created.

The Limited PSLF Waiver officially ended last October. However, the Education Department and MOHELA, its contracted PSLF servicer, are still processing a backlog of PSLF applications related to the waiver.

Student Loan Forgiveness For Public Servants Under IDR Account Adjustment

Many of the benefits of the Limited PSLF Waiver were subsequently extended by the IDR Account Adjustment, which is ongoing. While much of the attention on the IDR Account Adjustment has focused on student loan forgiveness for borrowers on 20- or 25-year repayment tracks, the IDR Account Adjustment can also benefit PSLF borrowers.

The IDR Account Adjustment broadens even further what can count toward student loan forgiveness. In addition to most periods of repayment, the adjustment can also credit some periods of deferment, forbearance, and even recent default toward PSLF for borrowers who were working in qualifying employment. Borrowers are receiving PSLF credit and associated loan forgiveness approvals on a rolling basis as the Education Department implements the adjustment through early 2024.

Some borrowers may need to consolidate their loans via the federal Direct consolidation program to qualify or maximize the PSLF benefits under the IDR Account Adjustment. But there’s still time to do so, as the window for consolidating to benefit from the adjustment ends on December 31, 2023.

New PSLF Rules May Expand Student Loan Forgiveness

The Limited PSLF Waiver and IDR Account Adjustment are temporary programs. But on July 1, the Education Department implemented new PSLF regulations designed to provide more lasting benefits to borrowers seeking loan forgiveness under the program.

The new rules partially codify some of the benefits of the temporary waiver and adjustment initiatives, allowing certain periods of deferment and forbearance to count toward loan forgiveness under PSLF. The reforms also will allow borrowers to retain at least some PSLF credit after consolidation (previously, consolidation would erase a borrower’s PSLF credit). Borrowers will also have the ability to “buy back” past periods that may not have counted toward loan forgiveness.

The new regulations also simplify and expand the definition of qualifying PSLF employment, particularly for non-full-time employees, certain contracted employees in limited circumstances, and adjunct faculty. And the regulations relax the definition of a qualifying payment, allowing borrowers to prepay or make a lump sum payment in certain circumstances.

Further Student Loan Forgiveness Reading

Education Department Suggests More Student Loan Forgiveness Approvals This Month

Timeline For Biden’s New Student Loan Forgiveness Plan Gets Clearer

Biden Administration Announces $72 Million In Student Loan Forgiveness

Student Loan Forgiveness Update: What The Latest Court Victory Means For Borrowers

Read the full article here

News Room September 7, 2023 September 7, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Starmer puts UK cabinet on alert for potential US attack on Iran

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

Steve Bannon warns Donald Trump Iran strike would ‘tear the country apart’

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

Foreign Treasury holdings remain near record high despite tariff turmoil

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

Donald Trump edges closer to Iran strike as military assets move into position

The USS Nimitz, one of the US’s 11 nuclear-powered aircraft carriers, abruptly…

‘Let them kill us’: millions of Iranians refuse to leave Tehran

Israel’s bombing of Iran came so close to the home of Mahin,…

- Advertisement -
Ad imageAd image

You Might Also Like

Finance

4 Ways To Avoid Fake Shipping Fee Swindles

By News Room
Finance

Dell Supports Endeavor Miami’s Quest To Empower Black Founders

By News Room
Finance

The World’s 10 Most Expensive Cities To Live

By News Room
Finance

Biden Sends Student Loan Forgiveness Emails To 800,000 Borrowers

By News Room
Finance

New Student Loan Forgiveness Application For Those With Medical Issues

By News Room
Finance

Who Really Owns Nursing Homes, And How The Feds Are About To Learn More

By News Room
Finance

Gone Are America’s Cushiest Federal Prisons

By News Room
Finance

Can You Still Get Insurance After A Cancer Diagnosis?

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

YOUR EMAIL HAS BEEN CONFIRMED.
THANK YOU!

Welcome Back!

Sign in to your account

Lost your password?