"More than 3.5 million borrowers will be credited with three years of payments on their student loan plans and another 40,000 will have their debt immediately canceled through Public Service Loan Forgiveness as the Department of Education overhauls income-driven repayment plans that failed to do what they promised," University Business reports.
..."One of the biggest changes borrowers will see is their updated IDR payments on StudentAid.gov, as FSA and loan servicers strive to do better in tracking payments under the watchful eye of the Department.
'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,' said Justin Draeger, CEO of the National Association of Students Financial Aid Administrators (NASFAA). '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.'"
NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.
Publication Date: 4/19/2022