$819M in Loan Debts Erased for Californians Under Forgiveness Program

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Thousands of Californians have had their student loan debt erased by applying and qualifying for relief under a limited temporary waiver. According KTLAofficials recommend that borrowers apply for relief under the Civil Service Loan Cancellation Program before the temporary derogation no longer applies.

This news comes as Americans wait for a decision on student loan relief to be made at the federal level. As part of the PSLF program, Californians can request cancellation of their debt only after making 120 payments in 10 years. KTLA shared that only 1 in 5 people who apply for debt cancellation actually get help. Those who have been accepted into the program can expect relief by 2026.

Head of Federal Student Aid, Richard Cordray mentioned that of the 14,000 borrowers who applied, many work in the civil service. Cordray tweeted the importance of taking action before the end of October.

“Federal student loan borrowers in #California who work in the public service get loan forgiveness under the limited #PSLF waiver! Remind borrowers to visit http://StudentAid.gov/pslfwaiver to see if they are eligible and the steps they need to take before the waiver ends on October 31, 2022,” the Tweeter detailed.

In order to be able to have their debt erased under the waiver, Californians must be employed full-time, have a direct loan, and have made the previously required 120 payments to pay off debt.

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