Changes to student debt forgiveness may provide assistance to more public sector employees.
Borrowers have criticised the programme for being difficult to get into.
Congressional staff and members are hopeful that a Department of Education.
reform would bring good improvements to a problematic student debt forgiveness programme for public sector workers and military personnel.
“We believe that this reform would assist in alleviating the economic burden that so many people face as a result of student debt.
Herline Mathieu, president of the Congressional Black Associates, stated.
In a statement published Wednesday, Mathieu’s organisation.
which represents Black House and Senate employees, said the reform may help individuals who have devoted their lives to public service.
particularly Black Americans.
“When we look at the racial composition of the student loan debt problem.
we see a huge discrepancy that has overwhelmed Black college graduates for far too long.
” the statement stated, citing a Brookings research that showed Black college graduates owing $52,726.
almost twice what white college graduates owe.
“This massive debt makes it virtually difficult to save money, much alone buy a house.
leaving thousands of Black Americans financially crippled, contributing to the racial wealth gap,” Mathieu added.
The modifications, which were announced by the Department of Education on Wednesday.
would allow more former students to benefit from the Public Service Loan Forgiveness programme.
The organisation said that it will examine rejected applications and provide applicants with the opportunity to have their petitions reviewed.
It also grants borrowers making payments on previously ineligible loan programmes or payment plans a waiver, allowing their payments to contribute toward debt forgiveness.
According to the agency, tens of thousands of borrowers may be eligible for debt forgiveness without taking any additional action.
and more than a half-million borrowers could have their number of qualifying payments rise.
So Employees who worked for government agencies or NGOs were eligible for debt forgiveness after ten years under the programme, which began in 2007.
However, many borrowers claimed that loan servicers gave them poor information about the programme or that they were refused access to it completely after paying their debts for years.
The DOE’s revamp aims to address a number of long-standing problems with the programme that have enraged legislators on both sides of the aisle.
Senators Maggie Hassan of New Hampshire and Marco Rubio of Florida sponsored a bipartisan measure earlier this year that would enable military personnel who postpone student loan payments while on active duty to credit their service toward student debt forgiveness.
In a statement, Hassan added, “Student loans should never be a barrier for joining public service, including the military.”
“We must ensure that the next generation of leaders is nurtured and that those Americans who work so hard to maintain our nation safe, secure, and free are supported.”
The agency also launched www.studentaid.gov/pslfwaiver, a new website where borrowers may learn more about the programme and its modifications.
Sen.
Tim Kaine, a member of the Senate Health, Education, Labor, and Pensions Committee who has pushed for a reform of the programme, said in a conference call with reporters on Wednesday that the modifications may also assist borrowers on Capitol Hill.
“Congress has a variety of public service loan programmes.
” The Virginia Democrat said, “but what we discovered in the previous administration was that public workers were asking for debt forgiveness and the administration was turning them down.”
He also applauded the Department of Education’s move to examine rejected loans.
saying that the department wasn’t as interested in assisting borrowers who were performing public service under previous President
Donald Trump’s term.
“I think there was a deliberate attempt to render them useless in order to denigrate,
the idea that public service is valuable,” he added.
more:
Biden is forgiving $5.8 billion in student loan debt, the most he’s ever done.
source:
Student loan forgiveness changes could spell relief for more public sector workers
