Student Loan Forgiveness – New Federal Proposal Open for Comments

​The Biden administration unveiled a new student loan forgiveness proposal this week. 
Across this and other loan forgiveness programs, 34,900 Kentuckians would be eligible for student loan debt relief. This program may be helpful to social workers and/or communities we serve.
This new loan forgiveness plan is proposed as part of an update to the Higher Education Act. First passed in 1965, the HEA was intended to ensure that every individual has access to higher education, regardless of income or where they live. The HEA has been reauthorized and amended several times since 1965. 
Eligibility for this new program would fall into a few categories:

• You are signed up for the SAVE Plan and had smaller loans.
  • You owe more than you borrowed.
  • You have been paying a long time.
    • 10 years – If you borrowed $12,000 or less.
    • 20 years – all borrowers receive forgiveness, depending on loans for graduate school.
• You are experiencing financial hardship.
  • More information is available on Income-Driven Repayment (IDR).
• You are employed by a government or nonprofit organization.
  • More information is available on Public Service Loan Forgiveness (PSLF).
• Your undergraduate program lost eligibility to participate in Federal Student Aid because it closed or misled students.
  
  WHAT TO DO: 

The federal government is inviting public comments on this proposal through May 17th. You can review the full plan and submit your comments online here.