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Two U. S. senators have proposed major changes to student loan forgiveness. Here’s what you need to know — and what it means for your student loans. U. S. Senators Sheldon Whitehouse (D-RI) and Jeff Merkley (D-OR) introduced new legislation — the Simplifying and Strengthening PSLF Act — to “streamline and improve” public service loan forgiveness. This proposal comes on the same day that the Biden administration announced $5.8 billion of student loan cancellation, which is the largest amount in U. S. history. If passed by Congress, this new legislation would:“The Public Service Loan Forgiveness program promised loan relief to Americans willing to pursue a career in public service,” Whitehouse said. “Instead, they landed in a bureaucratic nightmare with no loan forgiveness in sight.”The biggest change in this proposal is to grant student loan forgiveness in half the time. Rather than get student loan forgiveness after 10 years, student loan borrowers could get their federal student loans canceled after only five years. As a presidential candidate, President Joe Biden proposed shortening public service loan forgiveness to five years, with $10,000 of student loan forgiveness for each year of service. In contrast, this new proposal would not cap the total amount of student loan forgiveness. Created by Congress in 2007, the Public Service Loan Forgiveness program grants complete federal student loan cancellation for student loan borrowers who work for a qualified public service or non-proft employer. Private loans, however, are ineligible for this student loan forgiveness. Currently, student loan borrowers must make 120 monthly student loan payments and enroll in an income-driven repayment plan such as IBR, PAYE, REPAYE or ICR. However, in some years, the program has been plagued by a 99% rejection rate. The Biden administration has sought to fix the troubled program by instituting major changes to student loan forgiveness that will provide more student loan forgiveness to borrowers. For example, the U. S. Department of Education, led by Secretary Miguel Cardona, relaxed the requirements for public service loan forgiveness. Among other changes:Student loan borrowers can complete a limited waiver by October 31, 2022 to get credit for all these changes. However you choose to pay off student loans, know that you have options. With student loan payments restarting soon, make sure to learn the best ways to save money and become debt-free:All data is taken from the source: http://forbes.comArticle Link: https://www.forbes.com/sites/zackfriedman/2022/06/02/senators-propose-major-changes-to-student-loan-forgiveness/#loan #newsfox #newstodayinusa #newsworldfox #newstodaybbc #newstodaydonaldtrump #