If you’re a college student with a swarm of student debts under your name, you may be in luck. The Department of Education just announced today that there are 100,000 students eligible for student loan debt cancellation. Here’s how to find out if you’re eligible for this new cancellation policy.
At a Glance
- More people are now eligible for the Public Student Loan Forgiveness Program
- This new policy adaptation will result in $6.2 billion in student debt relief
- Those who work in public service and make payments over the course of a decade are eligible
- All student debt payments will start back up on May 1
More Information on Student Loan Forgiveness
According to CNN, those who are eligible are the individuals impacted by changes made to the Public Service Loan Forgiveness program last year. When all is said and done, this new cancelation policy will result in a total of $6.2 billion in student debt relief.
So, what exactly changed last year to account for this money to be sent out?
The Public Student Loan Forgiveness program promised borrowers that their student debt would be canceled as long as they make payments over the course of 10 years. This is for certain eligible public service workers. This program began only 15 years ago, meaning very few so far are getting forgiveness prior to 2021.
Then, last year, President Joe Biden widened some of the eligibility requirements. Students were complaining that they discovered they were ineligible. This was only after paying on their loans for a decade. People who now qualify for this program will find out on a rolling basis.
“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,” Education Secretary Miguel Cardona said, according to The Hill.
This new effort by the Biden Administration is amongst many goals to make loan forgiveness easier for some people under programs that already exist. This new temporary waiver means that all payments are eligible as long as the person is working for a qualifying employer. It does not matter what kind of federal student loan a borrower has.
Student Loan Payments Start Back Up
Meanwhile, all other students will have to resume making monthly payments starting on May 1. There have been several extensions due to the pandemic in order to grant people a form of financial relief.
Now, however, new financial hardships are right around the corner or already here. Inflation has some people worried about being able to afford these payments. Also, the current Russian invasion of Ukraine is driving up certain prices as well.
Apparently, the President is now considering another pause in student debt. This is something the White House officials will continue to consider as we get closer and closer to that May date. More than $16 billion in student debt money has been vanquished since Biden took control of the office. President Biden has also stated he wants to cancel $10,000 in debt for each student borrower.