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February 2, 2022

The Biden administration discharged $5 billion worth of federal student loans in 2021 through a revamped forgiveness program, which made it easier for public servants to wipe out their student loan debt.

More than 70,000 borrowers qualified for the Public Service Loan Forgiveness program (PSLF) since President Joe Biden took office, the Department of Education announced in a Jan. 20 press release.

This limited PSLF waiver, which was put in place temporarily amid the coronavirus pandemic, also helped bring hundreds of thousands of borrowers closer to meeting the eligibility requirements for debt relief. Prior to the overhaul, about 98% of PSLF applications were rejected and just 16,000 borrowers had ever received a loan discharge in the program's history, the Education Department said.

The Public Service Loan Forgiveness program allows public servants to discharge the remaining balance of their federal student loans after making payments on their debt for 10 years. In October 2021, the Biden administration overhauled the program to give borrowers credit for past periods of repayment that previously didn't count, which resulted in $5 billion worth of student loan discharges for 70,000 borrowers.

This federal student loan repayment program is available to select teachers, nurses, government employees, military service members, lawyers and law enforcement personnel, as long as they work for a federal agency or in a nonprofit setting. If you believe you qualify, you'll have to verify detailed information of your employment history through employer certification.

You can see if you're eligible for this program using the PSLF Help Tool on the Federal Student Aid (FSA) website. Student loan borrowers who don't qualify for PSLF may consider alternative student debt repayment options, such as refinancing. Learn more about student loan refinancing by getting in touch with a knowledgeable loan expert at Credible.

SOURCE: Fox Business