Federal student loan bills return in October. But a growing chorus of borrowers say they simply can’t, or won't pay, per Bloomberg.

In July, U.S. President Joe Biden announced he will cancel $39 Billion in student loan debt for more than 804,000 borrowers.

This year, it was announced the Biden administration announced it will forgive student loan debt worth $42 billion for over half a million public service workers. The program would help forgive the debts of teachers, nurses, government employees, and more.

This comes from an announcement by the US Department of Education, highlighting changes to its Public Service Loan Forgiveness (PSLF) program by expanding forgiveness eligibility temporarily. Per the report, the program will be extended to 615,000 borrowers in October 2021.

US Secretary of Education Miguel Cardona gave a statement regarding the administration's moves when it came to student loans. He said that the moves were towards fixing what was described as a "broken student loan system."

Cardona: “Since Day One, the Biden-Harris Administration has worked relentlessly to fix a broken student loan system, including by making sure we fulfill the promise of Public Service Loan Forgiveness for those who have spent a decade or more serving our communities and our country,”

In order to be eligible for debt forgiveness, participants would need to complete 10 years of service. Before this, only less than 1% of applicants as of 2018 were able to qualify for debt forgiveness.

To qualify, applicants need their Federal Student Aid (FSA) login info and their W-2 or federal employer identification number. FSA Chief Operating Officer Richard Cordray commented on the matter in an ED statement.

Cordray: “FSA is making the Public Service Loan Forgiveness Program as easy as possible so all public servants can finally get the loan forgiveness they have earned,”

Recently, the Supreme Court allowed for a $6 billion student loan debt settlement after a class-action lawsuit where borrowers said that they took the loans based on a misrepresentation made by their schools, many of which are for-profit.

In November, the White House decided to extend the pause on federal student loan payments through the end of June 2023.

See flow at unusualwhales.com/flow.

Other News:

Resources:

CNBC

US Department of Education