The Biden administration on Wednesday announced a major overhaul of the Public Service Loan Forgiveness program
That includes a dramatic expansion of those eligible for it and reviews of previously rejected PSLF applications, which will result in immediate forgiveness for tens of thousands of borrowers and benefit an additional 550,000 borrowers with an average additional credit of another two years of payments.
Additional changes seek to make the program more accessible and transparent, including providing automatic credits for military service members and federal employees.
In a statement, AFSCME President Lee Saunders applauded the changes, saying, “Relief is here for our everyday heroes who have dedicated their lives to strengthening our communities. For too long, public service workers, many of whom could have earned more working in the private sector, encountered a maze of changing rules, unreliable loan servicers and zero accountability or assistance when seeking debt forgiveness.”
When the loan forgiveness program started in 2007, its goal was simple: encourage workers to pursue careers in public service. After 10 years of public service work, applicants – teachers, nurses, first responders, child welfare workers, librarians, mental health professionals, law enforcement officers and many other professionals – would have the balance of their student loans forgiven, provided they’d made on-time payments of their loans.
However, only a paltry few were ultimately given that relief because the task of applying for loan forgiveness was onerous, confusing and misleading.
Now, with the reforms that Biden’s Department of Education will impose over the next year, many are closer to loan relief.