Important updates to federal student loan reforms

The deadline to apply for the U.S. Department of Education’s temporary Public Service Loan Forgiveness waiver is Oct. 31. Announced last year as part of a series of reforms to the program, the waiver allows past payments to count toward forgiveness progress, including those previously deemed ineligible. Meanwhile, several lawsuits have been filed in response to President Biden’s recent executive order to provide one-time loan forgiveness to certain student loan borrowers. The outcome of the lawsuits could impact the program’s future and may delay the application process, which is scheduled to begin this month. The Biden administration also recently amended eligibility for the program amid the legal challenges. Updates now specify that borrowers with privately owned loans are ineligible for forgiveness. Loan recipients also have the ability to opt out of automatic relief, according to the changes. Visit studentaid.gov for more information on the waiver and to register for updates on the one-time loan forgiveness program.