Overhaul moves 550,000 public service workers, including educators, closer to student loan cancellation
Posted: October 9, 2021
On Wednesday, the U.S. Department of Education announced an overhaul of the Public Service Loan Forgiveness (PSLF) Program that will be implemented over the next year. More than a half-million borrowers will move closer to loan forgiveness, and 22,000 will become immediately eligible.
Changes include:
- A limited PSLF waiver that allows all payments by student borrowers to count toward PSLF, regardless of loan program or payment plan.
- Reviewing denied PSLF applications for errors and giving borrowers the ability to have their PSLF determinations reconsidered.
This policy will result in 22,000 borrowers who have consolidated loans, including previously ineligible loans, being immediately eligible for $1.74 billion in forgiveness without the need for further action on their part. Another 27,000 borrowers could potentially qualify for an additional $2.82 billion in forgiveness if they certify additional periods of employment.
The department says it plans to roll out other changes in the weeks and months ahead, and is exploring additional steps to continue to make this process easier for borrowers.
The National Education Association hosted two virtual events this week to discuss what these reforms mean for you and how we can continue to advocate for affordable higher education for all. Listen to a town hall with U.S. Secretary of Education Miguel Cardona, Under Secretary James Kvaal, NEA President Becky Pringle, and AFT President Randi Weingarten:
Watch a briefing on PSLF reforms by NEA student debt experts and learn how these updates affect the larger movement around student debt cancellation:
These changes come after 48,000 NEA members outlined the failures of PSLF and demanded the Biden administration take action, and wouldn’t have happened “without the activism of NEA members,” said NEA President Becky Pringle.