UPDATE: The U.S. Department of Education released the overhaul for Public Service Loan Forgiveness this morning. The new policy will result in 22,000 borrowers who have consolidated loans — including previously ineligible loans — being immediately eligible for $1.74 billion in forgiveness without the need for further action on their part. Another 27,000 borrowers could potentially qualify for an additional $2.82 billion in forgiveness if they certify additional periods of employment.
More information may be found here. Inside Higher Ed will publish a story tomorrow with details.
The Department of Education is expected to unveil a “major overhaul” of the Public Service Loan Forgiveness program in the coming weeks, according to White House press secretary Jen Psaki.
The changes are coming through a series of executive actions, though the specifics of those actions have not been detailed. Psaki said during a press conference Monday that there will be an opportunity for public service workers, including teachers, military service members and nonprofit employees, to have their past loan payments counted toward loan forgiveness, regardless of the loan program the payments were made to.
“Fixing this program has been a priority for the administration from the first day,” Psaki said.
The department is also working on reforms to PSLF through the negotiated rule-making process, which is ongoing.