3 Possible Areas of Student Loan Forgiveness

During the US Senate Committee on Heath, Education, Labor & Pensions hearing for the nomination of James Kvaal to serve as Undersecretary of Education on April 15, 2021, we saw a few Congress members ask Mr. Kvaal questions about the Public Service Loan Forgiveness (PSLF) program. We’ve learned that the 3 areas of possible student loan forgiveness proposed by President Biden:

At 1:02:57: “In the area of student debt cancellation, President Biden has proposed some forms of loan forgiveness.”

  1. “There’s a temporary measure related to hardship related/due to the pandemic and economic emergency.”
  2. “Making the public service loan program work.”
  3. “Forgiving debts for people with particularly high debts and low incomes.”

At 1:20:14, Mr. Kvaal restates the 3 areas: “President Biden has talked about loan forgiveness in a couple of different categories.”

  1. “Some relief now for people struggling with the pandemic and the economic emergency.”
  2. “Additional relief in the areas of public loan forgiveness.”
  3. “And also for students with particularly high debts and low incomes.”

While we don’t know the exact details such as the amount of student loan forgiveness ($10,000 vs $50,000) or even who will qualify, it looks like the Department of Education will be heading towards the direction of loan forgiveness and will soon provide borrowers with some much needed relief.

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