A U.S. congressman has proposed major changes to student loan forgiveness.
Here’s what you need to know — and what it means for your student loans.
U.S. Rep. Joe Courtney (D-CT) introduced new legislation yesterday — the Simplifying and Strengthening PSLF Act — to help more student loan borrowers qualify for student loan forgiveness and cancel their student loans. If Congress passes this significant legislation, there would be huge changes to student loans:
- Faster student loan forgiveness: Student loan borrowers can get public service loan forgiveness after five years rather than ten years;
- More student loan payments are eligible: More student loan payments would be eligible for student loan forgiveness. For example, any previous student loan payment will count as a qualifying student loan payment, regardless of federal loan type, student loan repayment plan, or whether the student loan payment was made in full or on time.
- Count student loan forbearance: Student loan borrowers in the military on active duty or in the Peace Corps, for example, can get credit for student loan forgiveness even if their student loans were in student loan forbearance or student loan deferment; and
- Consolidate student loans: If you have Parent PLUS Loans or FFELP Loans and have already consolidated your student loans, you could consolidate student loans again into a Direct Loan to qualify for public service loan forgiveness.