DoED Overhauls Student Loan Forgiveness Program for Public Servants
The Department of Education (DoED) has announced an overhaul to the Public Service Loan Forgiveness (PSLF) program through which over half a million borrowers would receive $4.5 billion in loan relief.
The Public Service Loan Forgiveness Program, created in 2007, is intended to forgive the outstanding federal student loan debt for public servants who have made 10 years of monthly payments.
The changes announced by DoED include many temporary waivers. For instance, all prior payments will count toward loan forgiveness, regardless of loan program or payment plan. Additionally, payments made under the Federal Family Loan Program (FFELP) and Federal Perkins Loan Program will count toward loan forgiveness, if the borrower consolidates the loans into a Federal Direct Consolidation Loan.
Furthermore, many other kinds of payments will count towards loan repayment including payments made in any repayment plan, late payments, and partial payments. To qualify for these changes, the borrower must file a PSLF form by October 31, 2022.
The DoED has also announced several other changes to the loan forgiveness program. For example, deferments and forbearances will count toward forgiveness for members of the U.S. Armed Forces who paused payments while serving on active duty. Also, a formal appeals process will be created for borrowers who wish to appeal their forgiveness decision. Applications that were denied, will be thoroughly reassessed in case of error.
“Borrowers who devote a decade of their lives to public service should be able to rely on the promise of Public Service Loan Forgiveness,” stated Miguel Cardona, Secretary of the DoED, of PSLF, The system has not delivered on that promise to date, but that is about to change for many borrowers who have served their communities and the country.”
More information is available on the DoED’s website.
