Education Department advances student loan forgiveness relief

The U.S. Department of Education (ED) on Nov. 1 issued final regulations designed to expand and improve targeted student debt relief programs. Most notably, ED will ease repayment requirements to qualify for loan forgiveness through the Public Service Loan Forgiveness (PSLF) program. Borrowers now will receive credit for payments that are made late, in installments, or in a lump sum. Prior rules only counted a payment as eligible if it was made in full within 15 days of its due date. The rule also allows certain periods of deferment or forbearance to count toward PSLF and eliminates interest capitalization on federal Direct Loans in several instances. ED also recently opened the application process for borrowers eligible for one-time federal student loan forgiveness. This comes despite ongoing litigation over the legality of the program, including a stay on the program issued on Oct. 22 by a federal appellate court. ED will continue to accept applications; however, the government cannot forgive the debt until the appeals court issues a ruling on the merits of the case. The application deadline is Dec. 31.