At Extreme Investor Network, we are always on top of the latest news and trends in personal finance. Today, we bring you exciting news about the Biden administration’s efforts to cancel student debt for public service workers.
Recently, the Biden administration announced the cancellation of $1.2 billion in student debt for 35,000 workers. This move comes as a result of much-needed fixes to the Public Service Loan Forgiveness (PSLF) program, which has long been plagued by issues that prevented many qualified individuals from receiving relief.
The PSLF program, established in 2007, allows certain not-for-profit and government employees to have their federal student loans forgiven after a decade of repayment. However, due to various technicalities and challenges within the program, only a small number of borrowers were able to successfully navigate the system and receive the relief they were entitled to.
Under the Biden administration, significant changes were made to the program to make it more accessible to borrowers. The U.S. Department of Education allowed borrowers a second chance to qualify for relief, as long as they had been making payments on their loans and working for an eligible employer. Additionally, borrowers were given the opportunity to consolidate their loans and receive credit for previously ineligible periods through a waiver program that expired in October 2022.
Since President Biden took office, the administration has cleared $69.2 billion in student debt for 946,000 borrowers under the PSLF program. This is a significant increase compared to the mere 7,000 individuals who received relief before Biden’s presidency.
At Extreme Investor Network, we understand the importance of staying informed about changes in personal finance that can impact your financial well-being. Be sure to check back for updates on this breaking news and other financial topics that can help you make informed decisions about your money.