Lenders are increasingly offering borrowers loans that are guaranteed by the federal government.
The Federal Student Loan Forgiveness Program (FSLF) will soon become a mandatory requirement for some borrowers.
In a press release Wednesday, FSLF said the new requirement will “help borrowers avoid interest rates that are higher than what they would otherwise pay for loans that they can repay.”
The move comes as the nation’s student loan crisis is worsening.
The U.S. has more than 10 million people on student loans, but only about 40 percent of those borrowers are eligible for full forgiveness, according to a recent report from the Federal Reserve Bank of Atlanta.
The new policy is likely to have a major impact on the nation.
In 2016, the government spent nearly $7 billion to pay for the student loan forgiveness program.
The amount of loans forgiven under the program was more than $1.2 trillion.
But it was just over half of the total amount of student loans outstanding, and it only covers roughly 12 percent of borrowers.
The federal government has long offered loans to students who can pay back their loans.
For years, the FSLP offered loans that were guaranteed by a federal government loan guarantee program, which was created to help students pay for college.
It’s unclear how the new program will affect that guarantee program.
In 2018, Congress enacted a law that expanded the FDLP to include loans that originated in the United States.
But the new law allows FDLF recipients to apply for federal student loans through the FELPA, the Department of Education’s online program.
In recent years, federal regulators have been cracking down on the FPL program.
Last month, the Consumer Financial Protection Bureau launched a crackdown on lenders that don’t provide borrowers with loan forgiveness.
In 2017, the agency fined more than 1,000 FPL borrowers more than half a million times, according a report from The Hill.
In January, the Federal Communications Commission issued a series of recommendations that included mandating the FTLF and other federal loan forgiveness programs, such as the FDS and FELP, to be fully available to borrowers who can’t pay their loans back.