"The U.S. Education Department on Tuesday announced changes to two key student loan programs: the Public Service Loan Forgiveness and income-driven repayment programs," Inside Higher Ed reports.
"The changes would “fix long-standing failures” in the programs, department officials said. After the changes are made, 40,000 borrowers will have their debts forgiven under the Public Service Loan Forgiveness program. More than 3.6 million borrowers will also receive at least three years of additional credit toward IDR forgiveness."
..."Reactions to the announcement varied.
'This is a small step toward rectifying the situation for borrowers who were misled or in the dark about all options available to them,' said Justin Draeger, CEO and president of the National Association of Student Financial Aid Administrators. '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.'"
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: 4/20/2022