On Aug. 24, the Biden-Harris Administration announced student loan information impacting federal student loan borrowers. Details will be forthcoming from the U.S. Department of Education (ED), but here are some highlights.
A final extension of the student loan repayment pause through Dec. 31, 2022.
Targeted debt cancellation for borrowers with loans held by ED. Borrowers with annual income during the pandemic of under $125,000 (for individuals) or under $250,000 (for married couples or heads of households) who received a Pell Grant will be eligible for up to $20,000 and those who did not receive a Pell Grant will be eligible for up to $10,000 in debt cancellation.
A proposed rule to create a new income-driven repayment plan that will substantially reduce future monthly payments for lower- and middle-income borrowers.
Proposed long-term changes to the Public Service Loan Forgiveness (PSLF) program that will make it easier for borrowers working in public service to gain loan forgiveness.
Proposed steps to reduce college costs and reinstate and improve a rule to hold career programs accountable for leaving their graduates with unaffordable debt.
The end of limited PSLF waiver nears
ED recently announced that the limited PSLF waiver has forgiven $10 billion in the past 10 months for over 175,000 borrowers. With the waiver’s end on Oct. 31 just two months away, it’s vital to continue to raise awareness of this opportunity. Here is a sampling of organizations that are encouraging federal student loan borrowers — through various communication methods — to access the waiver before it ends.
Additionally, the U.S. Department of Education (ED) has added a new PSLF Employer Search making it easier for people to uncover qualifying PSLF employers without having to first start a PSLF application.
Operation Fresh Start
The Department of Education released guidance to schools on awarding federal student aid under Title IV of the Higher Education Act to students with defaulted loans. The Dear Colleague Letter (Gen-22-13) was released on August 17, 2022 and shares insight on the Fresh Start initiative.
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