Student Loan Forgiveness Program Faces Uncertainty Under New Administration
As the political landscape shifts, a popular student loan forgiveness program hangs in the balance. The Public Service Loan Forgiveness (PSLF) initiative, signed into law by President George W. Bush in 2007, allows certain not-for-profit and government employees to have their federal student loans canceled after a decade of payments. However, with the re-election of former President Donald Trump, the program’s future is uncertain.
A Brief History of PSLF
During Trump’s first term, he called for the elimination of PSLF. The Heritage Foundation and over 100 conservative organizations also proposed ending the program through Project 2025. Despite its troubled past, the Biden administration revamped the program, making it more accessible to borrowers. Since then, over 1 million people have had their student debt erased through PSLF, a significant increase from the mere 7,000 before.
What’s at Stake Now?
While the program remains in effect, borrowers are still eligible for relief. According to Betsy Mayotte, president of The Institute of Student Loan Advisors, “PSLF is written into federal law… and it would take an act of Congress to eliminate it.” With Republicans holding a majority in the Senate and the House still undecided, it’s unclear whether both chambers would support ending the program.
Potential Consequences
If Congress were to vote to eliminate PSLF, it wouldn’t be retroactive. Current borrowers would still be able to work toward loan forgiveness under the program. The worst-case scenario would be that the change would apply only to new borrowers, with existing borrowers being grandfathered in. Higher education expert Mark Kantrowitz agrees that this is the most likely outcome.
What Borrowers Can Do
To ensure they’re on track for loan forgiveness, borrowers can use the PSLF help tool to search for qualifying employers. They should also access the employer certification form at StudentAid.gov, which confirms their eligible job and generates an updated tally of qualifying payments. It’s essential to fill out this form at least once a year and keep records of confirmed qualifying payments.
Stay Informed, Stay Ahead
With the future of PSLF uncertain, borrowers must stay vigilant and informed. By understanding the program’s requirements and staying on top of their payments, they can ensure they’re eligible for loan forgiveness, regardless of what the future holds.
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