President Joe Biden is sending out emails to nearly 400,000 borrowers who are on track to receive student loan forgiveness within two years. The Public Service Loan Forgiveness (PSLF) program is set to eliminate federal student loan debt for borrowers who have made 120 qualifying payments while working for certain nonprofit or public organizations. The Biden administration has made significant improvements to the PSLF program since 2021, resulting in almost 80,000 borrowers being approved for over $5 billion in loan forgiveness. This brings the total amount of loan forgiveness under PSLF to $62.5 billion, benefiting more than 870,000 borrowers.
The Education Department’s announcement coincided with the latest wave of student loan forgiveness approvals under the PSLF program. The Biden administration has been working to correct the problems that plagued PSLF for years, leading to the rejection of many nurses, teachers, first responders, and other public service workers. Nearly 400,000 borrowers are within two years of receiving student loan forgiveness under PSLF, with President Biden urging them to remain on track. Under current law, borrowers must complete the full 120 qualifying payments to qualify for loan forgiveness, and partial completion does not result in partial forgiveness.
Borrowers can use the Department of Education’s PSLF Employer Search Tool to check if their employment qualifies for loan forgiveness. In addition, the IDR Account Adjustment opportunity provided by the Biden administration allows borrowers to retroactively receive PSLF credit for past periods that wouldn’t normally count. This temporary adjustment aims to help borrowers who were working in qualifying public service employment but may have missed out on credit due to administrative errors. However, borrowers must take action, such as consolidating their loans through the Direct loan program, before the end of April to qualify for the account adjustment and receive past period credit.
President Biden’s email to borrowers this week acknowledges the failures of the PSLF program in the past and highlights the administration’s efforts to correct those errors. Biden encourages borrowers to continue their public service work, assuring them that they could qualify for student loan forgiveness in less than two years if they remain on track with their payments and employment. The PSLF program is an important tool to bring more Americans into public service and reduce the burden of student loan debt, but it requires borrowers to meet specific criteria and make the necessary payments while working for eligible employers.
Overall, the Biden administration’s recent focus on improving the PSLF program has resulted in a significant increase in the number of borrowers receiving loan forgiveness. The latest wave of approvals totaling over $5 billion in loan forgiveness demonstrates the administration’s commitment to helping public service workers eliminate student loan debt. By notifying nearly 400,000 borrowers of their progress towards loan forgiveness and urging them to stay on track, President Biden is working to ensure that more individuals benefit from the PSLF program and are relieved of their student loan burdens.
