Thousands of Californian's have had their student loan debts erased by applying and qualifying for relief under a limited, temporary waiver. According to KTLA, officials recommend for borrowers to apply for relief under the Public Service Loan Forgiveness Program before the temporary waiver no longer applies.
This news arrives as Americans wait for a decision regarding student loan relief to be made on a federal level. As part of the PSLF program, Californians can apply to have their debt forgiven only after they have paid 120 payments over the course of 10 years. KTLA shared that only 1 in every 5 individuals who apply to have their debt forgiven are actually granted assistance. Those who have been accepted into the program can expect relief by 2026.
Head of Federal Student Aid, Richard Cordray mentioned that of the 14,000 borrowers who applied, many work in public service. Cordray tweeted the importance of taking action before the end of October.
"Federal student loan borrowers in #California who work in public service are getting loan forgiveness under the limited #PSLF waiver! Remind borrowers to visit http://StudentAid.gov/pslfwaiver to see if they’re eligible & the steps they need to take before the waiver ends Oct. 31, 2022," the Tweet detailed.
To be eligible to have their debt erased under the waiver, Californians must be employed full time, have a direct loan, and have made the previously required 120 payments towards their debt.