Borrowers who work in the public sector and government are eligible for this forgiveness. (iStock )
Another 60,000 student loan borrowers will receive student loan relief in the coming weeks. The Biden administration announced $4.5 billion in aid for public sector workers such as nurses, teachers and social workers.
The relief comes as a solution to the original Public Service Loan Forgiveness (PSLF) program. The program was initially signed into law by George W. Bush in 2007 to grant loan forgiveness to nonprofits and government workers after a decade in the workforce.
“Before President Biden and Vice President Harris entered the White House, the Public Service Loan Forgiveness program was so riddled with dysfunction that only 7,000 Americans ever qualified,” U.S. Secretary of Education Miguel Cardona said in the news release. Ministry of Education.
The new relief is intended to pay off the loans of borrowers who were initially denied underwriting or who have still not received relief after making the 120 required monthly payments.
“Today’s announcement comes in addition to the significant progress we have made for students and borrowers over the past three years,” President Joe Biden said in a statement.
“That includes approving debt forgiveness for nearly 5 million Americans across our various debt relief efforts; providing the largest increases in the maximum Pell Grant award in more than a decade; establishing income-related repayments so that borrowers get the relief they deserve; and holding colleges accountable for benefiting students and families,” Biden said.
If you have private student loans, federal relief unfortunately does not apply to you. If you want to lower monthly payments and ease the burden of student loan debt, consider refinancing. View what your interest rate could be via the online marketplace Credible.
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Resources available for students affected by the recent hurricanes
Hurricanes Helene and Milton devastated many communities in the south, causing serious physical damage and severely disrupting education services. In response, the U.S. Department of Education has released resources to help students and higher education institutions recover.
“I have directed our Department of Education team to use every available resource to meet the needs of affected students, families and school communities,” Cardona said.
The new resources include support for recovery needs such as mental health care for students and faculty, technical assistance and flexible financial aid policies at affected universities. Many students are also automatically covered by natural disaster protection, so they don’t have to worry about their loans while they recover from the hurricanes.
The bulk of these resources will be concentrated on Georgia, which has suffered significant damage. The Readiness and Emergency Management for Schools Technical Assistance Center is a specific program that Georgians can access. It helps educational institutions manage their safety, security and emergency management programs.
The Early Childhood Technical Assistance Center is another option that provides resources and links to organizations that help families and children, including those with disabilities, cope with disasters.
If you don’t have federal student loans that qualify for assistance, refinancing can lower your monthly payment. You can use Credible to compare student loan refinancing rates from multiple private lenders at once without impacting your credit score.
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$70 million in federal funding will go to schools for additional mental health services
In addition to helping student loan borrowers and students affected by natural disasters, the Biden administration is also directing federal funding to mental health services in K-12 schools. The government has announced a $70 million investment that will increase students’ access to mental health care.
“We know that students are more likely to access mental health care when it is offered in schools, and our educators and school communities are on the front lines when a student is struggling,” Cardona said in the announcement.
“The need for mental health support in our schools remains great,” Cardona said. “Today’s announcement of an additional $70 million will enable more institutions and schools to train and hire mental health professionals – especially in underserved communities – so that every student has access to the care he or she needs. needs to thrive.”
The new funding, combined with investments from the Bipartisan Safer Communities Act (BSCA), will go to 333 grantees in 48 states. It will help communities train and hire an additional 4,000 mental health professionals across the country.
To see what you would pay for a private student loan, visit Credible today to view a rate table that allows you to compare fixed and variable rates from multiple lenders.
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