Spotlight on Student Loans:
White House Continues Progress on Student Loans
Making Things Right for Student Loan Borrowers
Last month, the Biden-Harris Administration announced that they would extend the federal student loan payment moratorium through August. This follows a number of extensions, which have been accompanied by slow and steady work to address weaknesses in the student lending system. So far, the Administration has forgiven debts for hundreds of thousands of borrowers who were defrauded by for-profit colleges, those who attended now-defunct schools, and those who are unable to pay their debts due to disability. Along the way, they’ve listened to borrowers and advocates about how to improve the Public Service Loan Forgiveness program, which led to the Limited Waiver Opportunity and potential future reforms coming down the pike.
Easing Re-Entry to Repayment for Those in Default
In their most recent extension of the student loan payment moratorium, the Dept. of Ed. dropped another lifeline for those borrowers in dire straits: federal loans in delinquency or default would be placed back in good standing. This “fresh start” is automatic, requiring no effort by borrowers, and will end all collections activity. This means an end to collections, and to wage and social security benefit garnishment, which should give impacted borrowers a positive bump to their credit scores.
Maintaining Momentum on Student Loan Reform
While this most recent progress won’t impact all borrowers, and doesn’t show any clear movement on things like general student debt cancellation, it shows that the Biden-Harris Administration is keeping student loan debt in their crosshairs. We hope to continue to see incremental progress like this over the coming years and are encouraged by what we’ve seen already. If you have any questions about the payment moratorium extension, Limited Waiver Opportunity, or any other recent changes to PSLF or student loans in general, we can explain how your personal situation is affected. We’re here for you!
If you’re pursuing Public Service Loan Forgiveness and you haven’t met with us yet, schedule your free 15-minute Discovery Session to find out if you qualify for PSLF, or what you can do if you don’t.