Multiple Sources

Round-up: Education Department Moves to Fix Longstanding Issues in Student Loan Programs

April 20, 2022

Using a combination of one-time waivers and adjustments to retroactively credit student loan borrowers with additional payments, the Education Department hopes to fix significant breakdowns in the federal student loan payment system.  The changes could eliminate the debts of at least 40,000 borrowers through the Public Service Loan Forgiveness program, and will give 3.6 million borrowers pursuing income-driven repayment at least three years of additional credits.
The public service program eliminates the debts of government and nonprofit workers after 10 years of qualifying loan payments, and those who enroll in income-driven plans are entitled to have their remaining debt wiped out after 20 to 25 years.
The Federal Reserve Bank of New York estimated outstanding student loan debt at just under $1.6 trillion.  Over the past two years, the share of student debt at least 90 days late is estimated to have dropped from over 11 percent to about 5 percent.
The following articles have appeared in various media outlets nationwide:
Department of Education Announces Actions to Fix Longstanding Failures in the Student Loan Programs
U.S. Department of Education
Changes in 2 Loan Programs
Inside Higher Ed
Ed Dept Reviews Payments for Student Loan Forgiveness to Fix 'Forbearance Steering'
Millions Move Closer to Student Loan Forgiveness With One-Time Government Waivers.
The New York Times
Biden Administration Gives More Borrowers Chance of Debt Cancellation
The Washington Post
Biden Aims to Expand Access to Student-Loan Debt Forgiveness for Millions of People
The Wall Street Journal
Changes to Student Loan Programs Could Bring Millions Closer to Getting Out of Debt, Education Department Says
Millions Closer to Student Debt Forgiveness Under New Biden Administration Changes
USA Today
Education Department Moves to Fix Student Loan Repayment Programs
US News & World Report
Biden Administration Eases Student Loan Forgiveness Through Income-Based Repayment Plans
U.S. Forgives 40,000 Student Loans, Provides Aid to 3.6 Million More
Reuters / YahooNews
New Student Loan Expansions Bring Debt Forgiveness Closer for Millions of Borrowers
CNET / Money
Biden to Cancel Student Loans for 40,000: Here's Who Qualifies

MORE News from NAICU