Facts Abou Student Loan Forgiveness
Facts Abou Student Loan Forgiveness

In order to try and help alleviate some of the student loan debt that thousands of borrowers have, the Department of Education is looking to take measures in the next few months to ease the pressures on many post-graduate Americans.

The payment pause is set to end on May 1. There are increasing signs that President Biden is likely to extend the student loan payment pause again, although so far, there is nothing official.

For tens of millions of Americans, student debt limbo will continue another three months. President Joe Biden plans to extend the moratorium on federal student loan paymentsthrough Aug. 31.

The move will mark the fifth extension since the pause took effect in March 2020. The nation’s $1.7 trillion student loan debt portfolio continues to grow, with no firm direction for the indebted. The freeze saves 41 million borrowers about $5 billion a month, the Education Department has said previously.

Some Democratic lawmakers, including Senate Majority Leader Chuck Schumer and Sen. Elizabeth Warren of Massachusetts, have been pressing Biden to use his executive authority to cancel up to $50,000 in student loan debt per borrower.

But Biden has said he believes such action must come from Congress. That’s likely an uphill battle with an evenly split Senate and Republicans broadly opposed to debt forgiveness. The president had campaigned on forgiving up to $10,000 in debt per borrower.

Borrowers from California, Florida, New York, Massachusetts, Ohio and Pennsylvania traveled to Washington to press the president to cancel student loan debt. They assembled outside of the Education Department with signs that read, “Can’t Pay, Won’t Pay,” or “You are not a loan.” The Debt Collective, an advocacy group focused on debt cancellation, arranged the event.

What is the Student Loan Forgiveness?

There are many people in the United States who may feel bogged down by their student loan debt, but the Public Service Loan Forgiveness (PSLF) program was brought in during 2007 to help individuals pay it off in a quicker and easier manner.

As part of the federal program, any eligible borrowers are able to have their loans cleared after 10 years if they meet some qualifying requirements.

In a poll released last month by the Student Borrower Protection Center (SBPC), a clear majority of surveyed borrowers supported extending the student loan payment pause to at least the end of the year. And another poll released last week showed wide support for across-the-board student loan forgiveness, and suggested that likely voters may be motivated to vote by actions to provide student loan relief.

The Requirements to have your Student Loan Forgiven after a 10-Year Period

-You must be working full-time for the government or an eligible non-for-profit in a certain field, like firefighting, teaching, government, nursing, public interest law, military, or religious work

-You need to have made payments for 10 years, totalling 120 payments for the full amount inside 15 days of the date the monthly payments goes out.

-You need to have a loan(s) in the federal direct loan program, although you can consolidate your federal loans as one payment as part of the PSLF.

*Check this link to help individuals understand more about the PSLF: https://studentaid.gov/pslf/

Student loan forgiveness bill to combat veterinarian shortage

For months, Arizona’s Family has reported on the valley-wide shortage of veterinarians, and it’s still giving pet owners problems. To mitigate that issue, a state lawmaker is introducing a new bill to forgive up to $100,000 in student loans. It’s giving students hope who want to be animal doctors.

Offering significant incentives - including a student loan reimbursement of up to 100,000 for veterinarians who work in Arizona for at least four years. A part of the agreement requires the vets to work at least two years at a county, nonprofit shelter, or in the agricultural industry.

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