The Department of Education is Offering Another Reprieve for Those Drowning in Student Loans

Sharee B.

More Than $2 Billion Has Been Forgiven This Year Alone

Student loan debt has been plaguing the country for decades as more than 44 million people have unresolved or delinquent balances. Now branded as a debt crisis by many economists, the amount in deficit hovers above 1.8 trillion dollars.

In recent months the current administration has either fully eradicated or seriously reduced the debts of over 600,000 borrowers who have either been defrauded by their institutions or are graduates of schools that are now defunct.

Some of the former institutions attached to the previous round of relief are:

  • Corinthian Colleges
  • ITT Tech
  • Marinello Beauty
  • Westwood Schools
  • Court Reporting Institute

Another set of changes is already taking effect as the Department of Education is in the process of overhauling the Public Student Loan Forgiveness Program. This program extends relief to employees who have worked in public sectors including teachers, emergency medical professionals, police or firemen, as well as other public service workers.

Previously, participation in the program had an approval rate of less than 1% however with updated measures that number has increased dramatically. Many former students who paid into the program thus meeting their 10-year status across 120 consecutive payments are being reassessed for partial or full loan discharge. Students who have made payments without reaching the requirement are having those payments recounted in regards to payoff eligibility.

The following groups are also eligible for full termination of student loan debts over the coming months.

  • People with a total and permanent disability
  • Military veterans
  • Public servants previously unqualified

Notifications for the borrowers affected are coming in the form of emails, letters, and phone calls around the country.

As for the rest of the student loan population, payments are expected to resume around January of 2022. Meanwhile, existing Federal Loan Servicers are in the process of transferring existing accounts to new ownership as a result of multiple lawsuits and lost revenue due to long-term deferrals.

Student loansLoan forgivenessPublic Service Loan ForgivenesDebtFinances

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