Student loans

New rules for 2023 boost chances of qualifying

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The Biden Administration announced executive actions Oct. 25 that will bring most Education Department-administered loans “closer to forgiveness,” the Education Department said. One of these actions: credit to the Public Service Loan Relief Program (PSLF) for borrowers who have qualifying employment.

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The PSLF program forgives the remaining balance on direct loans after borrowers make 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer, according to the Department of Education.

The new shares will provide borrowers with many of the same benefits as those who applied for the PSLF under the temporary changes — the “Limited PSLF Waiver” — before its Oct. 31, 2022, end date, the department said in a statement. hurry.

“I am incredibly proud that the temporary changes made by the Biden-Harris team to the forgiveness of public service loans have helped more than 236,000 teachers, nurses, veterans, government employees and other public service workers to get more than $14 billion in debt relief,” Education Secretary Miguel Cardona said. was quoted as saying in an October 25 press release. “Today, we encourage public service workers to take advantage of the temporary changes to the program before the October 31 deadline. At the same time, we are taking bold steps that will automatically bring hardworking public service workers one step closer to forgiveness and permanent change to reduce the bureaucracy that has plagued the PSLF program. The Biden-Harris team is more committed than ever to delivering on the PSLF promise and ensuring that borrowers who dedicate their careers to teaching our children, strengthening our communities and serving our nation get the relief they deserve. .

The final regulations announced by the ministry, which will be implemented on July 1, 2023, “will reduce regulatory hurdles that have historically made it more difficult for borrowers to progress towards PSLF forgiveness.”

These regulations will allow borrowers to receive credit to PSLF on payments made late, in installments or in a lump sum, whereas previous rules only counted a payment as eligible if it was made in full within 15 days. following its due date, according to an information sheet.

In addition, from July, certain periods of deferment or forbearance towards PSLF will be counted, including deferment of cancer treatment or deferment of military service, or deferment of economic hardship.

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The new rules will also simplify the criteria to help borrowers certify their employment and provide the opportunity to correct problems, according to the fact sheet.

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This article originally appeared on GOBankingRates.com: Student loan forgiveness: new rules for 2023 boost chances of qualifying