Changes could be made to the federal student loan exemption program
Federal student loan borrowers are cautiously optimistic about the changes on the horizon for the federal student loan waiver program.
“I don’t feel like there is enough advice on how to be forgiven,” says Dr Andrea Thomas. “So there is a part of me that lacks faith in the actual process of forgiveness.”
The program was first introduced in 2007. The head of the education ministry said changes to the program would include a review of refused applications and the entire process.
A time-limited waiver to allow past payments to count toward their loan will be available to borrowers.
For members of military service, active service will also be taken into account in the program.
Investment professional Mitchell Goldberg says that with 1 in 8 Americans with student debt, he thinks the program overhaul is good news.
“It will help almost immediately, 550,000 people – as long as they are aware that this program exists and that is the key,” Goldberg said.
The goal of the program is to write off a portion of the federal student loan debt for eligible public sector workers after they have made 10 years of monthly payments.
Senator Chuck Schumer (D-NY) wants the Biden administration to write off up to $ 50,000 in student debt for each borrower.
Goldberg cautions borrowers because of the political wrangling over the infrastructure bill and social spending programs, not to count on this $ 50,000 pardon. The focus may not be on canceling student loans.
“People should start preparing to repay their loans in January. Don’t wait, ”he said.