As part of the settlement, the ministry said it would automatically review its application as long as all borrowers rejected before November 1, 2020 had paid for 10 years. If the department determines that the refusal is justified, it will send an email to the borrower to explain the decision and how to qualify.
This goes one step further than the temporary expansion announced last week, allowing previously unqualified borrowers to be exempt from loans if they submit their application by the end of October 2022.
A new appeal process will also be created by April 30, 2022 for those whose application has been rejected. All eight plaintiffs in the proceedings will also clear the loan balance, which is estimated to be about $ 400,000.
AFT President Randi Weingarten called this a “breakthrough victory” for educators, nurses and other civil servants who were mistakenly rejected.
“We have confirmed that our promises have been kept,” Weingarten said in a phone call with reporters. “The reconciliation unravels the Gordian knots of the failed implementation of PSLF.”
State Department spokesman Kelly Leon said the Biden administration was working to improve the program, but she said she couldn’t fulfill her promise.
“We are pleased to resolve the proceedings and look forward to working with organizations, including AFT, to further improve the PSLF program,” she said in a statement.
The borrower refused to relieve the student loan.National news
Source link The borrower refused to relieve the student loan.National news