The US Department of Education has approved over $42bn in student loan forgiveness for more than 615,000 borrowers in the last 18 months, as part of a scheme aimed at encouraging more people to work in public service jobs.
The U.S. approves $42 billion in federal student loan forgiveness for public service workers
The Public Service Loan Forgiveness program (PSLF) cancels the remaining debt of a borrower after 10 years of public service work or 120 monthly payments, including for teachers, librarians, nurses, lawyers, military personnel, and other public workers.
The PSLF is separate from President Biden‘s student debt relief plan, which would clear or reduce loans for millions of borrowers. The government temporarily relaxed PSLF requirements in October 2021, making it easier for people to apply and be approved, but the requirements ended in October 2022.
Borrowers who want to increase their payment count can apply for a one-time account adjustment until the end of the year
The PSLF waiver allowed Beth Bourdon, an assistant public defender in Florida, to qualify for relief and have $57,000 of student loans forgiven in February 2022. Bourdon praised the program for its support of public workers, who are not highly paid, and its ability to encourage them to remain in public service, adding that it was “so great” to know others had benefited too.
READ ALSO: You Could Have $900 To The IRS, But There’s Not Much Time Left To File A Claim