What to know about these 5 student loan forgiveness programs -- and how Biden has expanded them
August 04, 2022 at 16:38
Regardless of his decision, there are several other ways many of the 43 million federal student loan borrowers may qualify for some student loan forgiveness.
Here are five forgiveness programs that currently exist for federal student loan borrowers and what Biden has done to modify them:1.
Public Service Loan ForgivenessHow it works:The Public Service Loan Forgiveness program , which was created by Congress in 2007, allows certain government and nonprofit employees to seek federal student loan forgiveness after making 10 years of qualifying payments.
More than 164,500 borrowers have received student loan forgiveness under the PSLF program, according to the latest government data .
In fall 2021, the Biden administration temporarily expanded the program so that some of those borrowers could retroactively qualify for student loan forgiveness under PSLF.
Teacher Loan Forgiveness ProgramHow it works:The Teacher Loan Forgiveness Program cancels up to $17,500 in federal student loan debt for certain full-time teachers who have worked in a qualifying low-income elementary or secondary school for at least five consecutive years.
Those who are considered highly qualified andteach other subject areas may receive up to $5,000 in loan forgiveness.
How Biden has expanded the benefit:120 qualifying payments after working five years and benefiting from the Teacher Loan Forgiveness Program.
Borrowers can potentially receive forgiveness under both the Teacher Loan Forgiveness Program and the Public Service Loan Forgiveness Program, but normally not for the same period of teaching service.
But this requirement is waived until October 31 thanks to Biden's temporary Public Service Loan Forgiveness waiver explained above.
That means that the period of teaching service that led to eligibility for Teacher Loan Forgiveness can count toward PSLF.
The move immediately resulted in the discharge of $5.8 billion in federal student loan debt for about 320,000 borrowers.