The Ministry of Education has begun to inform student loan borrowers that it may be much closer to abolishing student loans under the significant expansion of the Biden administration of student loan forgiveness programs.
On October 6, the Biden administration announced major changes to the Public Service Loan Exemption (PSLF), a federal student loan exemption program that has long been plagued by issues such as complex eligibility requirements and low approval rates. Did. This program traditionally required 120 “qualified payments” to obtain a loan forgiveness, but payments are often refused for technical reasons.
Through the ministry’s new “Limited PSLF Exemption” initiative, which will take effect until October 2022, the Biden administration has restricted PSLF relief to certain types of federal student loans and certain types of loan repayment programs. Temporarily relax requirements. By expanding its eligibility for more federal student loans and payment plans of all kinds, the ministry has nearly 600,000 student loan borrowers approaching student loan allowances, some getting immediate loan cancellations. I presume that.
As part of the limited PSLF exemption, the department audits the loan account directly and previously refuses to PSLF due to technologies such as payments made based on the wrong repayment plan, too early or too late, or not. Automatically review the payments made. You will be paid the right amount.
On Friday, the department began sending emails to thousands of student loan borrowers confirming an increase in eligible PSLF payments under department audits. “Based on our quote and your records, your direct loan payment count for PSLF should go up,” read the email. The department also estimates the number of additional PSLF payments that will apply to the borrower’s account. This ranges from just a few to dozens of additional payments, depending on the borrower. The ministry states that this is a tentative estimate and that it may take several months to officially update the PSLF payment count.
“Do you want good news this Friday night? All the first batches of PSLF emails about loan forgiveness were sent directly to people with integrated loans and certified employment. Check your inbox! “The Secretary of Education Miguel Cardona said in a tweet on Friday. “And if you didn’t get it, hang firmly! More is going on.”
The Ministry of Education bases its updated PSLF quotes for borrowers on the duration of eligible PSLF employment already registered by the Ministry of Education. Borrowers who have not submitted a recent PSLF employment certificate may want to do so. That way, the department will have the latest information.
For non-direct loan borrowers who wish to benefit from the PSLF exemption, additional steps such as direct loan consolidation may be required. Borrowers can learn more about the limited PSLF exemption here.
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