The administration of the President of the United States Joe Biden on Thursday, October 17, announced that it was forgiving another $4.5 billion in student debt to more than 60,000 borrowers.
The latest round of relief was the result of the US Department of Education’s fixes to the popular, but once-troubled, Public Service Loan Forgiveness program. Joe Biden, who has forgiven more education debts than any other president of the United States, said that the number of borrowers who took advantage of the mentioned program under his administration amounted to more than 1 million people.
In a statement from the US President, it was noted that public service workers, including firefighters, teachers, managers, nurses, and others, are the bedrock of communities and the country. At the same time, in this context, it was underlined that the government had not fulfilled its obligations for too long.
The PSLF program, which was signed by President George W. Bush in 2007, allows some not-for-profit and government employees to cancel their federal student loans after 10 years. In 2013, the Consumer Financial Protection Bureau of the United States estimated that one-quarter of workers may be eligible. It is worth clarifying that in this case, American workers are meant.
The process of implementing the mentioned program was fraught with various problems. In this context, it is worth mentioning a situation in which some borrowers were sure that they were gradually approaching the cancellation of the loan, but at some point faced strong disappointment that their goal was not a realistic prospect due to non-compliance with technical requirements, such as the type of loan or repayment plan.
During Joe Biden’s presidency, the US Education Department relaxed the requirements for the mentioned program and overhauled how it’s managed.
Borrowers who are eligible for a new round of relief should learn of their repaid debt in the coming weeks.
The approximate estimate by higher education expert Mark Kantowitz provides that the average balance on a student loan forgiven under the PSLF is about $70,000.
As we have reported earlier, SoFi Debuts Student Loan Tool.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
