Tens of Thousands Could Have Debt Erased as Part of Student Loan Forgiveness Program Overhaul

The U.S. Department of Education has announced a drastic overhaul of the Public Service Loan Forgiveness program that it says will allow tens of thousands of borrowers to get out of debt. “Borrowers who devote a decade of their lives to public service should be able to rely on the promise of Public Service Loan Forgiveness,” Education Secretary Miguel Cardona said in a press release. “The system has not delivered on that promise to date, but that is about to change for many borrowers who have served their communities and their country.” Up until now, borrowers have had to meet a specific set of criteria to qualify for loan forgiveness, making at least 120 on-time student-loan payments, and having a specific type of loan. But the Education Department will now issue waivers to borrowers to ease some of these requirements, making 22,000 borrowers eligible for the program, and an additional 27,000 potentially see their debts erased if they were working in the public sector when they made previously ineligible payments. Only 16,000 borrowers have had their loans forgiven since the program was established in 2007, the department said.