Student Loan Forgiveness: Troubled Public Servant Program 'Needs a Very Critical Look,' Education Secretary Says

May 5, 2021
In The News

The Biden administration appears to be highly motivated to fix the Public Service Loan Forgiveness (PSLF) system that has been long considered to be “broken” by experts. “We need to do better with Public Service Loan Forgiveness — about 98% have been rejected, of the claims that are put in — to me this really needs a very critical look to make sure that the intention that you have in Congress is followed through on, and that we're doing everything to put our students at the center of the conversation,” Education Secretary Miguel Cardona told a hearing held by the House Subcommittee on Labor, Health and Human Services, Education, and Related Agencies on Wednesday.... Lawmakers led by Representative John Sarbanes (D-MD), Senator Tim Kaine (D-VA), and Senator Kirsten Gillibrand (D-NY) separately called on Cardona to strengthen PSLF. “We urge you to take action to waive or modify counterproductive restrictions, barriers and donut holes in PSLF,” the lawmakers stated in a joint letter sent on Wednesday. “We also urge the [ED] to take proactive steps to simplify the process, provide more transparency and bolster oversight of the program and loan servicers to ensure that the PSLF program is implemented in accordance with congressional intent.”