Public Service Loan Forgiveness Program , Overhauled by US Department of Education.
Significant changes to the federal student loan forgiveness program were announced by the agency on Oct. 6.
It could reportedly help over 550,000 borrowers working in government and nonprofit sectors.
The Public Service Loan Forgiveness Program (PSLF), which wipes out student loan debt for those who qualify after they've made monthly payments for a decade, .
has often been criticized for
being hard to navigate. .
According to government data, , over 1 million borrowers have made a qualifying payment, , but only about 5,500 people have received loan forgiveness.
Now, the Department of Education says it will "restore the promise" of the program via actions that will be implemented "over the coming months.".
One such action includes a limited-time waiver authorizing "all prior payments" to count toward the program, including those that didn't previously qualify.
According to an agency memo, the waiver will continue through Oct. 31, 2022.
Steps will also be taken to help military service members and federal employees utilize the program's resources.
Steps will also be taken to help military service members and federal employees utilize the program's resources.
These actions will help identify and address servicing errors or other issues that have prevented borrowers from getting the PSLF credit they deserve, U.S. Department of Education, via press release