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President Biden Announces New Student Loan Forgiveness Details
Public Service Loan Forgiveness Program Expanding
Eligible Borrowers to Get Automatic Discharge
The Biden administration announced today that it will automatically discharge $12 billion in student loan debt for 125,000 borrowers who have worked in public service for at least 10 years.
The Public Service Loan Forgiveness (PSLF) Program allows certain public servants, such as teachers, nurses, and social workers, to have their federal student loans forgiven after 10 years of service.
Previously, borrowers had to apply for PSLF and prove that they met all of the program's requirements. This process was often complex and time-consuming, and many eligible borrowers were denied forgiveness.
The new changes will make it easier for public servants to get their student loans forgiven. Borrowers who have worked in public service for at least 10 years will no longer have to apply for PSLF. Instead, their loans will be automatically discharged.
The Biden administration is also expanding the PSLF Program to include more types of public service work. Previously, only certain types of work, such as teaching in a low-income school or working for a nonprofit organization, were eligible for PSLF.
The new changes will expand PSLF to include work for any government agency, including federal, state, local, and tribal governments. It will also include work for nonprofits that provide essential public services, such as healthcare, education, and housing.
The Biden administration's changes to the PSLF Program are a significant step forward in addressing the student loan debt crisis. These changes will make it easier for public servants to get their student loans forgiven and will help to reduce the financial burden on these essential workers.
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