The Education Department on Wednesday announced a sweeping overhaul to the loan forgiveness program that will immediately erase the debt of 22,000 borrowers to the tune of $1.7 billion. The government estimated another 27,000 borrowers could see about $2.8 billion in debts forgiven if they prove they were employed in an eligible job.
The changes are designed to let borrowers correct errors and count payments they were trying to make toward the program. That should shorten the amount of time more than 550,000 borrowers – those who have already consolidated their loans – are required to make payments to qualify for forgiveness, the government said.
The redesign of the Public Service Loan Forgiveness program is President Joe Biden’s latest effort to address the nation’s growing $1.7 trillion in student loan debt and ease the burden of struggling borrowers.