Borrowers who work in the public service sector or the government are eligible for this exemption. (iStock )
An additional 60,000 student loan borrowers will receive student loan relief in the coming weeks. of Biden administration announces $4.5 billion in relief for public servants such as nurses, teachers, and social workers.
This relief comes as an amendment to the original Public Service Loan Forgiveness (PSLF) program. The program, which provides nonprofit and government employees with loan forgiveness after 10 years of service, was first signed into law by President George W. Bush in 2007.
“Before President Biden and Vice President Harris entered the White House, the Public Service Loan Forgiveness Program was dysfunctional, with only 7,000 Americans eligible,” U.S. Secretary of Education Miguel Cardona said in a Department of Education press release. ” he said.
The new relief package is aimed at repaying the loans of borrowers who were initially denied approval or who have not yet received relief after making the required 120 monthly payments.
“Today's announcement builds on the important progress we've made for students and borrowers over the past three years,” President Joe Biden said. statement.
“This includes authorizing debt cancellation for nearly 5 million Americans across a variety of debt relief efforts, increasing the maximum amount of Pell Grants by the largest amount in more than a decade, and extending the relief that borrowers received. “This includes fixing income-driven repayments so that they can receive them, and holding colleges accountable for taking advantage of students and families,” Biden said.
If you have private student loans, unfortunately, federal relief does not apply to you. If you want to lower your monthly payments and ease the burden of student loan debt, consider refinancing. Find out what your interest rate will be through the online marketplace Credible.
Is college debt worth it?
Resources available to students affected by recent hurricanes
Hurricanes Helen and Milton wreaked havoc on many communities in the South, causing severe physical damage and severe disruption to educational services. Accordingly, U.S. Department of Education releases resources Helping students and higher education institutions recover.
“I have directed my team at the Department of Education to leverage all available resources to meet the needs of affected students, families, and school communities,” Cardona said.
New resources include support for recovery needs, including mental health care for students and educators, technical assistance, and flexible financial aid policies for affected universities. Additionally, many students are automatically enrolled in the Natural Disaster Forgiveness Program, so they don't have to worry about their loans while recovering from a hurricane.
Most of these resources will be concentrated in Georgia, where the damage has been significant. of Preparedness and Emergency Management Technical Assistance Center for Schools is a special program accessible to Georgians. Helps educational institutions manage safety, security, and emergency management programs.
of Early Childhood Technical Support Center Another option is to provide resources and links from organizations that help families and children, including people with disabilities, cope with disasters.
If you don't have federal student loans that qualify for assistance, refinancing may reduce your monthly payments. Credible allows you to compare student loan refinance rates from multiple private lenders at once without affecting your credit score.
Student loan debt has increased 430% since 2003 – here's how to reduce your debt
$70 million in federal funds will go to schools for additional mental health services
In addition to aid for student loan borrowers and students affected by natural disasters, the Biden administration is also directing federal funds to mental health services in K-12 schools. of The administration announced a $70 million investment. This will expand access to mental health support for students.
“We know that students are more likely to have access to mental health support if it is provided in schools, and educators and school communities are on the front lines when students are facing challenges. ” Cardona said in the announcement.
“The need for mental health supports in schools remains high,” Cardona said. “Today’s announcement of an additional $70 million will enable more institutions and schools to train and hire mental health professionals, especially in underserved communities, and help all students to ensure they receive the care they need to thrive.”
This new funding, along with Bipartisan Safe Areas Act (BSCA) investments, will go to 333 grant recipients in 48 states. This will enable communities to train and hire an additional 4,000 mental health professionals across the country.
To see how much you'll pay on a private student loan, visit Credible today to view an interest rate table that lets you compare fixed and adjustable rates from multiple lenders.
Less than one-third of Americans approve of Biden's approach to handling student loan debt
Have a finance-related question but don't know who to ask? Email it to your trusted money expert. [email protected] Your questions may be answered in Credible's Money Expert column.
