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Democrats Urge Immediate Student Loan Relief And Propose 4 Ways To Fix Student Loan Forgiveness

Democrats urge immediate student loan relief and propose 4 ways to fix student loan forgiveness.

Here’s what you need to know.

Student Loans

Student loan cancellation has experienced several recent setbacks. Now, a cadre of U.S. senators and representatives took a break from pushing student loan cancellation to focus on student loan forgiveness. In a letter to U.S. Secretary of Education Miguel Cardona, the members of Congress — which include Sen. Tim Kaine (D-VA) and Sen. Kirsten Gillibrand (D-NY) — want public service loan forgiveness fixed in at least 4 ways. They want to remove the impediments, bureaucracy and roadblocks that have resulted in a staggering 98% of applications for student loan forgiveness from being rejected. It’s the latest update on student loan forgiveness. Here are their 4 ways to fix student loan forgiveness:

1. All federal student loans should be eligible

Created in 2007, the Public Service Loan Forgiveness helps student loan borrowers who work full-time for a qualified public service or non-profit employer get federal student loan forgiveness after 120 monthly payments, among other requirements. Technically, all federal student loans are eligible, but student loan borrowers have to take an additional step if they have FFELP Loans, for example. To qualify for public service loan forgiveness, student loan borrowers with FFELP Loans need to consolidate their student loan debt into a Direct Consolidation Loan. Rather than make student loan borrowers take this additional step, Democrats want all federal student loans to be eligible and to waive the requirements to consolidate student loans first.

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