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speaks on student loan debt in the Roosevelt Room of the White House August 24, 2022 in Washington, DC. President Biden announced steps to forgive $10,000 in student loan debt for borrowers who make less than $125,000 per year and cap payments at 5 percent of monthly income. Borrowers looking to receive student loan forgiveness for public service work have a rapidly narrowing window to apply for relief under a temporary waiver.
But PSLF was plagued by problems for years due to complex regulations, administrative oversight issues, and improper handling of accounts by loan servicers. Approval rates barely eclipsed two percent., an initiative that temporarily eases several of the PSLF program’s strict rules. Specifically, the Limited PSLF Waiver allows the Education Department to retroactively credit broad prior loan periods towards a borrower’s loan forgiveness term under PSLF that may have previously been rejected.