Student Loans Change Today: Here’s Who’s Impacted

Millions of student loan borrowers no longer will be able to get their debts forgiven under President Joe Biden’s administration beginning May 1.
Public service workers, including teachers and nurses, were able to get their debts cleared under specific Department of Education (DOE) rules, but that is no longer the case as of today.
The DOE is transitioning those public workers with federal student loan debt from student loan servicer MOHELA (Missouri Higher Education Loan Authority) into the federal agency.
Read more: Student Loan Forgiveness Updates and FAQs
Borrowers can expect that move to take through July, and during that time, roughly 2 million borrowers in the Public Service Loan Forgiveness (PSLF) program will see their forgiveness paused.
President Joe Biden delivers remarks on new administration efforts to cancel student debt and support borrowers at the White House on October 4, 2023, in Washington, D.C. As the Education Department moves MOHELA’s programs under… President Joe Biden delivers remarks on new administration efforts to cancel student debt and support borrowers at the White House on October 4, 2023, in Washington, D.C. As the Education Department moves MOHELA’s programs under its wing, many public service workers will see their debt forgiveness paused. More Kevin Dietsch/Getty Images
Previously, borrowers working in public service could see their debt canceled after making 120 monthly qualifying payments.
However, Michael Lux, an attorney and founder of the Student Loan Sherpa, cautioned borrowers against panicking upon hearing the news.