To correct these errors and get more student loan borrowers to qualify for student loan forgiveness, Biden and the U.S. Department of Education announced the following changes, among others:count student loan payments toward student loan forgiveness, even if made before student loan consolidation;make FFELP Loans and Perkins Loans eligible for student loan cancellation;get student loan forgiveness even if you made student loan payments under the wrong student loan repayment plan;be eligible for student loan forgiveness even if you made late student loan payments or incomplete student loan payments; andallow active duty members of the military to “count” payments even if enrolled in student loan forbearance or student loan deferment. Unlimited student loan forgiveness is a mistakeCurrently, a student loan borrower who qualifies for public service loan forgiveness can get unlimited federal student loan forgiveness. If limiting student loan forgiveness sounds like a Republican proposal, Biden too has supported capping student loan forgiveness at $50,000 a year. Student loans: next stepsWhile the fixes to student loan forgiveness will help more student loan borrowers get student loan forgiveness, it’s possible that more changes may follow. As legislators and policymakers consider student loan forgiveness, how should they balance student loan relief for student loan borrowers with protecting taxpayers from more federal spending?

Source: Forbes October 29, 2021 06:38 UTC