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Education Department forgives loans of more than 110,000 people in public service

Education Department forgives loans of more than 110,000 people in public service

More than 110,000 people with student debt have received around $6.8 billion in relief thanks to temporary changes to the troubled Public Service Loan Forgiveness Program.

The latest figures from the US Department of Education show how many borrowers have benefited from the Biden administration’s policy changes announced last year. Hundreds of thousands more people may be eligible for debt forgiveness as part of the effort. According to the Education Department, the average debt reduction per borrower is close to $60,000.

President George W. Bush signed the public service loan forgiveness bill into law in 2007, allowing nonprofit and government employees to have their federal student loans forgiven after 10 years or 120 payments. According to the Consumer Financial Protection Bureau, one-quarter of American workers may be eligible.

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However, the program has been plagued by issues, making people who receive relief a rare occurrence.

Borrowers frequently believe they’re on their way to having their loan canceled, only to find out later on that they don’t qualify, usually for confusing technical reasons. Lenders have been accused of deceiving borrowers and failing to meet deadlines.

How can I benefit from the new rules?

Over 110,000 people with student debt have received around $6.8 billion in relief thanks to temporary changes to the troubled Public Service Loan Forgiveness Program.

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The latest data from the US Department of Education reveals how many borrowers have benefited from the policy changes announced by the Biden administration last year. Hundreds of thousands more people could benefit from the effort by having their debts forgiven. According to the Education Department, the average amount of debt relief per borrower is around $60,000.

President George W. Bush signed the public service loan forgiveness bill into law in 2007, allowing nonprofit and government employees to have their federal student loans forgiven after ten years or 120 payments. One-quarter of American workers, according to the Consumer Financial Protection Bureau, may be eligible.

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However, the program has been plagued by issues, making recipients of relief a rare occurrence.

Borrowers frequently believe they are on their way to having their loan canceled, only to find out later in the process that they do not qualify, usually for technical reasons that are difficult to understand. Lenders have been accused of deceiving borrowers and delaying payments.

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