US Department of Education overhauls Public Service Loan Forgiveness program

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3. 100,000 student loan borrowers may now be eligible for debt cancellation

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Almost 100,000 people are now eligible to have their student loan debt canceled, the Department of Education announced Wednesday.

The cancellations apply for people affected by changes in October 2021 to the Public Service Loan Forgiveness program, or PSLF, last year. According to CNN, the total amount of cancellations could reach $2.6 billion. PSLF forgives the remaining balance on federal student loan debt after an eligible public service worker has made 120 monthly payments while working for a qualified employer.

The program was created about 15 years ago but, according to CNN, a very small percentage of people who applied received forgiveness before 2021. Last year, President Joe Biden announced the program would offer expanded eligibility through Oct. 31, 2022, to allow borrowers who previously didn’t qualify to apply for the relief.

The Department of Education is currently in the process of notifying borrowers who may be eligible to apply.