(USNewsMag.com) – Student loan debt is one of the hottest topics in the US with roughly 46 million Americans collectively owing almost $1.75 trillion. Over 8 million of those have defaulted on their debt, thrusting them into a battle for financial security.
On Wednesday, March 9, the Department of Education announced almost 100,000 people are eligible to have their student loan debts canceled. That translates to about $6.2 billion worth of debts for former students. The loan forgiveness only applies to a certain subgroup of people: those who were impacted by recent changes to the Public Service Loan Forgiveness program (PSLF).
President Joe Biden will cancel $6.2 billion in student loans through changes to student loan forgiveness. Here's who qualifies: https://t.co/obqJRAXhvO
— Forbes (@Forbes) March 10, 2022
The PSLF program provides forgiveness for eligible borrowers who’d been promised debt cancellation after they paid on it for 10 years. In order to qualify for that program, a person must:
- make 120 qualifying payments;
- have Direct Loans or consolidated other federal student loans;
- work full-time at a qualifying nonprofit or full-time for the government; and
- use an income-driven repayment plan for the loans.
President Joe Biden’s administration also allowed people who weren’t eligible before to apply, details for those who might temporarily qualify can be found here.
The forgiveness program was established 15 years ago. Over 90% of the people who have applied to the program have been rejected.
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