Education Department forgives loans of more than 110,000 people in public service

U.S. Education Secretary Miguel Cardona delivers remarks at the department’s Lyndon Baines Johnson Building in Washington, D.C., on Jan. 27, 2022.

More than 100,000 people with student debt have been helped by temporary changes to the Public Service Loan Forgiveness Program.

The new figures from the U.S. Department of Education show how many borrowers are benefiting from the policy fixes announced by the Biden administration. Many more people could see their debt discharged as part of the effort. According to the Education Department, the average amount of debt reduction is $60,000.

The public service loan forgiveness law was signed into law by President George W. Bush in 2007. One-quarter of American workers could be eligible, according to the Consumer Financial Protection Bureau.

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People who actually get the relief are a rarity due to the problems of the program.

Many borrowers think they are paying their way to loan cancellation only to discover they don't qualify due to confusing technical reasons.

Under the Biden administration, timelines and some payments that were previously ineligible are counted.

Mark Kantrowitz, a higher education expert, said you want to act quickly.

The new rules for public service loan forgiveness are due to expire in October.

If you have a Federal Family Education Loan (FFEL) or a Federal Perkins Loan, which don't normally count for public service loan forgiveness but now temporarily do, you will need to consolidate those into direct loans with your servicer.

It typically takes 30 days to 45 days for the consolidation to occur.

Borrowers should do this even if they don't have 120 payments by the deadline, as the previously ineligible payments will count only if they do this.

In addition, borrowers will have to prove that their work was considered public service for any stretch of time that they are trying to get forgiveness for. For each job you have had throughout your career, you need to file an employer certification form with your servicer.

If borrowers have made 120 payments in the past, they can still qualify for forgiveness.

Even if you haven't paid your student loan, you still count toward the program even if you haven't paid.

Some borrowers seem to be getting forgiveness after the government audits their accounts.

Taking these steps will benefit you.