Student Loan Relief: Biden Administration Automatically Discharges $12 Billion for 153,000 Borrowers
PSLF Program Provides Forgiveness for Public Service Workers
120 Qualifying Monthly Payments Required
The Biden-Harris Administration has announced that it will automatically discharge $12 billion in student loan debt for nearly 153,000 borrowers. This relief is provided through the Public Service Loan Forgiveness (PSLF) Program, which forgives the remaining balance of Direct Loans after the borrower has made 120 qualifying monthly payments while working full-time in public service.
This is a significant change from previous policy, which required borrowers to apply for PSLF and submit detailed documentation of their qualifying payments. The new automatic discharge process will greatly simplify the process for borrowers and ensure that they receive the relief they are entitled to.
Past Periods of Deferment and Forbearance May Now Count
In addition to the automatic discharge of $12 billion in student loan debt, the Biden administration also announced that past periods of repayment deferment and forbearance will now count towards IDR forgiveness. This means that borrowers who have experienced financial hardship and have been unable to make their monthly loan payments will still be eligible for forgiveness.
These changes to the PSLF and IDR programs are a major victory for student loan borrowers. They will provide much-needed relief to those who are struggling to repay their student loans and will help to make college more affordable for future students.
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