A proposal has been made to forgo student loans
Learn how it will impact your student
Senator Sheldon Whitehouse (D.RI) and Senator Jeff Merkley, (D.OR) introduced a bill – the Simplifying & Strengthening PSLF Bill – to “streamline” and improve public service loan forgiveness. This proposal was made on the same day that the Biden administration announced cancellations of the largest number of student loans in American history.
- It will be easier to get student loan forgiveness if student loan payments are reduced to 60 over five years instead of 120 over ten.
- Reimburse student loan payments made in the past, regardless of federal loan type or repayment plan.
- Include monthly student loan payments for active-duty military personnel and Peace Corps volunteers, regardless of student loan forgiveness or deferment.
- Consolidation of student loans: This allows parents who have consolidated FFEL federal education loans to consolidate their loans in one Direct Loan.
Whitehouse stated that the Public Service Loan Forgiveness Program offered relief to Americans who choose a career in public services. Instead, they found themselves in a bureaucratic mess with no guarantee of loan forgiveness b>
How to Get Approved
While this plan is not for everyone, it is currently available to those who meet the eligibility requirements.
Biden still offers $1.5 billion in student loan forgiveness for borrowers
Congress established a program in 2007 that allows federal student loan borrowers who work for qualified non-profits or public service organizations to get their federal student loans forgiven. Private student loan borrowers are not eligible for the student loan forgiveness program. The student loan borrower must make 120 monthly repayments and be enrolled in an income-driven repayment plan such as IBR or PAYE, REPAYE or ICR.
Despite a rejection rate at 99%, the Biden administration took major steps to correct the student loan forgiveness program. Secretary Miguel Cardona’s leadership led to the U.S. Department of Education easing requirements for public service loan forgiveness.
- Repayment Plans: All types of repayment plans are included;
- Consolidated student loans must include all payments prior to consolidation.
- Count late student loan payments or partial;
Borrowers of student loans can get credit for these changes by completing a waiver up to October 31, 2022. There are many options available for repaying student loans. Before student loan payments resume, learn how to save money and get debt-free.