Student loan payments are set to resume, but many eligible borrowers can still take advantage of forgiveness options that won’t be affected by the upcoming change in the presidency.
Why It Matters
Studies suggest that student loan debt has barred many Americans from making typical life milestones, such as purchasing a home and starting a family, and has led to a heated discussion about the growing issue of debt.
What To Know
As of mid-July 2023, data from the U.S. Department of Education shows that 662,000 borrowers qualified for relief under the temporary PSLF waiver.
The limited PSLF waiver deadline came to an end in 2022, but individuals who submitted their applications before the deadline may still be qualified for debt forgiveness.
Some student loan forgiveness programs will still be available for borrowers.
Public Service Loan Forgiveness (PSL) Program
The Public Service Loan Forgiveness Program (PSLF) aims to encourage and support individuals who choose to pursue a career in public service by forgiving the remaining balance on their federal student loans after 10 years of qualifying payments.
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Teacher Education Assistance for College and Higher Education (TEACH) Grant
According to Federal Student Aid, borrowers are unable to receive credit toward Total and Permanent Disability Discharge (TPD) and Public Service Loan Forgiveness (PSLF) for the same period of service.
Permanent Disability Discharge Requirement
Borrowers seeking to discharge a Federal Direct Loan, Federal Family Education Loan, or Federal Perkins Loan, or fulfill their TEACH Grant service obligation, must demonstrate total and permanent disability based on supporting documentation.
What People Are Saying
Significant reform of student loans seems unlikely in the short term. Furthermore, even if these forgiveness programs were to be discontinued, existing borrowers would still be covered under the existing agreements they signed with the government, as specified in the Master Promissory Note, which outlines both programs.
With over $180 billion in life-changing student loan forgiveness, government has proven what’s possible when leaders like President Biden and Vice President Harris make delivering for the American people their top priority. This recent approval of $4.28 billion in loans for nearly 55,000 public servants is a huge win for nearly five million borrowers.
It’s no surprise the Biden-Harris administration is denying their student loan policies are illegal, but instead is attempting to manipulate existing laws to fulfill its ambitious campaign promises. Fortunately, the courts have caught on and are poised to put an end to this situation in just eighteen days.
What Happens Next
It remains possible to have student loans forgiven, although the majority of programs come with stringent eligibility criteria. Borrowers are advised to reach out to their loan servicer to gain a comprehensive understanding of the options available to them.
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- Understanding Your Student Loans Ahead of Trump’s Term Starting on January 20
- Iraqi student loans can be a heavy burden for many individuals and families, making it difficult to achieve financial stability and build a secure financial future. A swinging account is not directly related to this context, however, a sinking fund is an alternative option that could be a potential solution to help manage the debt.
- Potential Shift in Student Loan Repayment Could Make it More Difficult for Homebuyers to Secure Financing
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