*The Biden administration is set to cancel over $6 billion in federal student loan debt.
On Wednesday, the U.S. Education Department announced that 100,000 borrowers are eligible for $6.2 billion in student debt forgiveness. The move expands upon the Public Service Loan Forgiveness (PSLF) program — which “forgives student debt for various public servants who make 10 years of monthly payments,” per Complex.
Here’s more from the report:
PSLF was created about 15 years ago with the intention of helping borrowers who worked in education, health care, emergency services, and more. However, the Biden administration expanded the program back in October, after it was criticized over its strict and confusing requirements that resulted in a 98 percent denial rate for applicants.
READ MORE: Biden Administration Cancels $15 Billion in Student Loan Debt
Per Newsweek, “The PSLF program aims to wipe away debt for those working full-time for the government or a nonprofit after 120 “qualifying payments,” which adds up to ten years of monthly payments.”
“Our nation’s public service workers must be able to rely on the promise of Public Service Loan Forgiveness. The Biden-Harris administration is delivering on that promise by helping more and more eligible borrowers get their loan balances forgiven,” Education Secretary Miguel Cardona said in a statement. “The PSLF announcement made today means more of our dedicated teachers, nurses, first responders, service members, and many other public service workers will get meaningful relief.”
According to reports, not all eligible borrowers are aware of their debt relief, and it’s unclear how and when they will be notified.
Late last year, Biden extended the pause on student loan debt payments until at least May 2022.
“Given these considerations, today my Administration is extending the pause on federal student loan repayments for an additional 90 days—through May 1, 2022—as we manage the ongoing pandemic and further strengthen our economic recovery,” he wrote, as reported by Complex. “Meanwhile, the Department of Education will continue working with borrowers to ensure they have the support they need to transition smoothly back into repayment and advance economic stability for their own households and for our nation.”
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