FOR IMMEDIATE RELEASE
Contact: Allie Arcese
WASHINGTON, D.C., APRIL 19, 2022 — The Department of Education (ED) today announced it will make administrative changes to the Public Service Loan Forgiveness (PSLF) and income-driven repayment (IDR) programs that will result in loan forgiveness for tens of thousands of student loan borrowers. The changes will also provide 3.6 million borrowers at least three years of credit toward IDR forgiveness.
“We applaud the Department for its efforts to correct long-standing administrative failures and inappropriate practices that have prevented thousands of borrowers from making progress toward repaying their loans, or having their remaining balances forgiven.
The tangled web of repayment options confuses borrowers, and financial aid administrators have long advocated for ways to improve the repayment process, including by strengthening the PSLF program, standardizing loan servicing policies and procedures, and providing standard consumer protections for federal student borrowers that are in line with other consumer financial products, to name a few.
This is a small step toward rectifying the situation for borrowers who were misled or in the dark about all options available to them, and we urge the Department to continue to evaluate how the federal government and its contracted servicers can make improvements to fairly and effectively administer the federal student loan programs.
The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents more than 32,000 financial aid professionals at approximately 3,000 colleges, universities, and career schools across the country. NASFAA member institutions serve nine out of every 10 undergraduates in the U.S. Based in Washington, DC, NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators. For more information, visit www.nasfaa.org.
Publication Date: 4/19/2022