Public Service Loan Forgiveness Program to undergo change?

The Education Board on Wednesday announced that the Public Service Loan Forgiveness Program is going to undergo significant change. If the changes are implemented as planned, it should allow thousands of applicants to qualify for relief status much sooner than anticipated. The program will be expanded to include public servants like teachers, nurses, government servants, and non-profit workers and pardon them for large sums of money. 

The PSLF program since its inception in 2007 has had many problems, applicants were largely not aware of the requirements to get forgiveness for their student loans. Many people submitted statements for up to 10 years only to know that they had the wrong kind of loan. PSLF program allows government and non-government workers with federal or student loan debt to have their remaining balances forgiven, tax-free. However, qualifying for the program is a task in itself, especially since the requirements are not communicated clearly. The applicants have to cross 4 hurdles, have a full-time job, the right kind of loan, and much more. The changes made by the Education Board are for three of the four hurdles. 

Regarding the type of loan, people with Federal Family Education Loan can also apply for forgiveness, this opens the doors for millions of public service workers. The applicants were supposed to maintain proof of 120 payments already done towards the fulfillment of the lean, earlier only certain types of payments such as were accepted but the changes state that all types of payment like part-time payment can also count under the 120 payments bracket. 

Source: The New York Times