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Although the Biden administration’s sweeping student loan forgiveness plan and the legal troubles around it have gotten the most headlines, the U.S. Department of Education has already canceled more than $66 billion in education debt under existing programs.
More than 2 million borrowers, including defrauded students and those who work in the public sector, have benefited from that relief over the last few years.
“I feel like this administration has done more for borrowers in a short period of time than any other, especially for the most vulnerable borrowers such as the disabled and victims of fraud,” said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit.
Still, advocates are worried about the administration’s plan to soon resume federal student loan payments, which have been suspended since March 2020, without deeper debt cancellation. Even before the Covid-19 pandemic, 1 in 4 student loan borrowers were in delinquency or default.
Here’s a breakdown of the debt relief already granted — and how to know if you qualify for it.
$42 billion in debt canceled for public servants
The Public Service Loan Forgiveness program allows certain nonprofit and government employees to have their federal student loans canceled after 10 years, or 120 payments.
A number of recent changes to the policy have increased the number of borrowers who’ve had their debt canceled under it. Those changes include simplifying and broadening the eligibility requirements.
As a result, the Education Department announced this month that it has approved $42 billion in loan cancellation under the PSLF program for more than 615,000 borrowers since October 2021.
The best way to find out if your job qualifies as public service is to fill out the so-called employer certification form. Try to fill out this form at least once a year, said higher education expert Mark Kantrowitz. Borrowers should also maintain records of their confirmed qualifying…
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