Recently, Public Service Loan Forgiveness (PSLF) has been in the news a lot. PSFL is a program that let student debt borrowers have any remaining balance on their account forgiven provided they had made 120 qualifying payments. Any payment that is made by the borrower on a direct federal loan, or under an employment repayment plan while working full-time for a public service sector or non-profit organization is referred to as a qualifying payment. This program makes millions of student debt borrowers to work in high-need yet low paying sectors like teaching, social work, and law enforcement services which often require advanced degrees as well.
While PSFL is legitimate and has some success ratio, the complications around it have limited the program’s benefits for the student debt borrowers. Even the employment repayment plan which allows young millennial to work full-time for the public sector or non-profit organization isn’t easy to comprehend. Due to its weird conditions, many student debt borrowers get stuck while they assume that they are making progress towards the loan forgiveness. In reality, they are not. To make things worse and complicated, the U.S Department of Education often failed to manage the program properly. Its contracted loan servicers mislead borrowers and most of the time don’t even care to notify them about the program requirements.
PSFL had many loopholes and cracks which could cause student debt borrows to fall to the never-ending quest to understand the basic requirements or correct errors. Meanwhile, some politicians in the power – including President Trump have been calling for a full repeal of PSFL. In this time, a new bill about to be introduced in the Congress by Democratic senators Kirsten and Tim Kaine could change the fate of many young student debt borrowers. The bill would not only preserve overhaul the program to make it more efficient, more transparent and easy to comprehend but also would be more accessible to its stakeholders.