If you’re confused about student loan forgiveness programs — or panicked by the start of federal student loan repayments in January — you’re not alone.
Recent court rulings could jeopardize the Biden administration’s efforts to expand student debt relief. Until resolved, these legal challenges leave millions of borrowers in financial limbo. To complicate matters further, the Civil Service Loan Forgiveness Scheme, which some thought was only available until October 31, is in fact still available, albeit in a more limited way now that the waiver has expired.
All of these developments have left many educators scratching their heads and checking their bank balances. To learn more about student debt relief, register for one of NYSUT’s free online student loan webinars offered to members in partnership with Cambridge Credit Counseling. With a live presentation and Q&A session, a Certified Cambridge Student Loans Advisor will guide you through the latest updates and help get you on the right track. Participants will also receive free access to the Cambridge Student Loan Portal, as well as the ability to schedule individual counseling sessions.
The next online webinars will take place on Wednesday, November 30 at 6 p.m.; Tuesday, December 13 at 4:30 p.m. and January 10 at 6 p.m. Thousands of NYSUT members have already taken advantage of this free union benefit. Through this program, counselors will help you better understand the various student loan repayment options, as well as the latest twists in public student load forgiveness programs.
Student debt relief has always been a complex — and controversial — topic, with many saying its complexity ends up exploiting borrowers. Unions have advocated tirelessly for the simplification, reform and expansion of loan forgiveness programs. Union leaders are committed to keeping members informed.
Here are some highlights of recent developments.
PSLF is always available to educators and other public servants. This is the case even if you missed the October 31 deadline to apply for the Limited Civil Service Loan Forgiveness Waiver. Significant ongoing improvements have been made to the program, so that more educators can benefit from the debt forgiveness they were promised. Incidentally, so far more than 236,000 educators and public service workers have received $14 billion in student loan forgiveness under the union-backed PSLF waiver.
Federal student loan payments are expected to resume and interest will begin to run again on January 1. Student loan payments have been suspended since March 2020, when the CARES Act was approved due to the pandemic. Union leaders are urging (LINK) the administration to extend the payment freeze to help borrowers who are still struggling with crippling debt.
A new federal loan forgiveness program, which was announced by President Biden last fall, has been halted by a number of ongoing legal challenges. As of last week, the US Department of Education stopped accepting applications for the new program, which would provide up to $20,000 in federal student debt relief to people earning less than $125,000. So far, more than 26 million student borrowers have already applied for the new debt relief, with around 16 million applications already approved. Biden officials said. While legal challenges could ultimately end up in the U.S. Supreme Court, the U.S. Department of Education said it will retain borrowers’ information so it can quickly process the remedy “once we win in court.” the tribunal”.
As the legal appeal process progresses, we will post updates on any new developments, including the resumption of the program.