Public Employees: Biden Administration Cuts Red Tape For Student Loan Forgiveness
President Joe Biden tapped former Ohio Attorney General Richard Cordray to be the Chief Operating Officer at the Federal Student Aid, U.S. Department of Education, and it is already paying big dividends for public service workers.
Many public employees carry a heavy burden of student debt. But now a life-changing opportunity is open to those employed in public service. The Biden Administration has created new ways to help federal student loan borrowers relieve this burden, especially through the limited Public Service Loan Forgiveness (PSLF) waiver.
"We want all public servants to be aware of this new benefit," said Cordray. "For everyone who qualifies, it provides a clear path to total student loan forgiveness."
In 2007, Congress created the PSLF Program. It applies to anyone who spends ten years working in public service. In brief, it forgives the remaining balance on federal student loans after borrowers have made 120 qualifying monthly payments, under a qualifying repayment plan, while working full-time for a qualifying public service employer.
Many people found it hard to navigate these requirements. So last October, President Biden announced the limited PSLF waiver to cut through the red tape. His initiative is a game changer. For a limited time, borrowers may get credit for periods of loan repayment that would not have qualified under the normal PSLF rules. This includes payments made on various types of federal student loans and under various types of repayment plans. We are even counting certain periods of deferment and forbearance. These major changes are temporary, however, and they will expire on October 31, 2022.