It may be more expensive for some student loan borrowers to access a popular debt forgiveness program, after a new policy rolled out by the Trump administration.
Borrowers who were using the so-called buyback option to get their debt cleared under Public Service Loan Forgiveness will likely be subject to a higher bill, as a result of the changes.
PSLF, which Congress created and President George W. Bush signed into law in 2007, allows certain not-for-profit and government employees to have their federal student loans canceled after 120 payments, or 10 years.
PSLF Buyback, meanwhile, was created by the Biden administration, and allows borrowers who have hit 120 months of qualifying employment to submit a request to the U.S. Department of Education to retroactively pay for any months they missed because of a forbearance or deferment.
Here’s why “buyback” offers may become more expensive, and what borrowers can do about it.
