Biden administration looking for public comment About the Public Service Loan Forgiveness (PSLF) Program, specifically what does and does not work under the Federal Student Loan Borrower Program.
“Congress has created [PSLF] 2007 program aimed at returning millions of nurses, police officers, firefighters, public defenders and other Americans in the public service. Since then, federal student loan borrowers have planned their careers and their lives around this program, believing that if they work in the public service for ten years paying off student loans, they will see forgiveness for the remainder of their debt, ”said Julie Margetta Morgan, Sr. Counselor and Acting Deputy Secretary of the Office of the Deputy Minister of Education in statement upon request for public comment. “Unfortunately, for too many government officials, the program did not work as they hoped. Correcting the PSLF program has been a priority for the Biden-Harris administration from day one. ”
Margetta Morgan said the US Department of Education made some improvements for borrowers at PSLF last year, such as a unified employment certification app that calculates payments and allows borrowers to check their forgiveness status. New PSLF Help Tool also makes it easier for borrowers to determine their eligibility for the program.
The department currently requires comments on the following issues:
- What PSLF features are the most difficult for borrowers to navigate?
- What barriers prevent government employees with student debt from completing PSLF or receiving PSLF loan forgiveness?
- What do you think of borrowers who have or have had loans other than the direct loan program when trying to access or participate in PSLF?
Comments on PSFL must be submitted by September 24, 2021. Federal portal of electronic regulation using registry number ED-2021-OUS-0082. Usage Information Rules.gov, including instructions on accessing agency documents, submitting comments, and viewing a to-do list, are available on the website in the FAQ section.
Moratorium on student loan payments
A request for comments to the PSLF came on the eve of the Senate Subcommittee on Economic Policy. student loan hearings took place on July 27.
The Economic Policy Subcommittee of the Senate Banking Housing and Urban Affairs Committee discussed upcoming changes that will affect student loan borrowers, including a deferral of student loan repayments due to end on September 30, 2021.
Members of the subcommittee, chaired by US Senator Elizabeth Warren, Massachusetts, also discussed how to prepare for the revision of federal student loan service contracts in December.
Two Student Loan Service Specialists recently terminated their contracts with the Ministry of Education, Previously reported by ACA International…
The Granite Government and the Pennsylvania Higher Education Support Agency (PHEAA), which works with PSLF loans, have canceled their contracts.
With the change in contracts, the Biden administration will have to transfer 10 million or more student loan borrowers’ accounts to various loan service organizations. Forbes reports…