As of June 1st, 145,000 Borrowers have gotten $8.1 billion in Relief under New Reforms. A Limited-Time Waiver through Oct. 31st, 2022, allows previously Ineligible Payments to Qualify for the program. More and more Student-Loan Borrowers are getting Relief through a Debt Forgiveness program for Public Service Workers.
On Friday, President Joe Biden's Education Department, released the latest data on progress made under the Public Service Loan Forgiveness (PSLF) program, which is intended to Forgive Student Debt for Public Servants, like Nonprofit and Government Workers, after Ten years of Qualifying Payments.
In October of 2021, the Department implemented a series of Reforms, that allows Borrowers to Count Payments from any Repayment Plans toward Loan forgiveness through PSLF.
Biden has focused on Targeted Groups, like Borrowers with Disabilities, and those Defrauded by For-Profit schools, who have seen more than $9 billion in collective Debt Relief. He also extended the Pandemic pause on Student Loan Payments, Four times since taking Office.
Democrats are pressuring him to relieve Borrowers in fear of Low Midterm Turnout, with some Progressives urging him to Cancel at least $50,000 for those in Debt, but Binden limit is $10,000. Meanwhile, Republicans Senators have introduced Bills intended to Prohibit Cancellation.
While the Education Department has touted Progress made under PSLF, some Advocates and Lawmakers worry that the Waiver is expiring too soon. A recent Analysis from Advocacy Group,
Student Borrower Protection Center, found that while 9 million Public Servants are Eligible for Sstudent-Loan Forgiveness, only 2% of them have actually gotten their Debt wiped out, and fewer than 15% have filed Paperwork to track their PSLF progress.
As a result of years of Flaws and a high PSLF Denial Rate under Trump, some Lawmakers have introduced Legislation to Permanently simplify the program. Sens. Sheldon Whitehouse (D-RI) and Jeff Merkley (D-OR), introduced a Bill earlier this month that would Reduce the Number of Qualifying Payments to PSLF to 60 Payments over Five years, and allow any prior Student-Loan Payment to Qualify toward Forgiveness Progress.
"The Public Service Loan Forgiveness program promised loan relief to Americans willing to pursue a career in public service," Whitehouse said in a statement. "Instead, they landed in a bureaucratic nightmare with no loan forgiveness in sight."
The Department has Not commented on whether it plans to extend the PSLF Waiver.
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