Limited Public Service Loan Forgiveness waiver (PSLF)

Updates Courtesy of the National Student Debt Forgiveness Center

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The U.S Department of Education (ED) has announced changes to the Public Service Loan Forgiveness (PSLF) program for a limited time as they respond to COVID-19, an emergency that currently affects all borrowers in repayment across America.

For years, the ED provided benefits, such as postponed payments and lower interest rates, but never before had there been such generosity during these difficult times. Until recently, when things changed once again with new guidelines on how long you can use your student loans without them counting towards eligibility under PSLF.

At the National Student Debt Forgiveness Center, we’re here to help you understand what PSLF is, as well as what its recent changes in requirements could mean for you. Get in touch with us today to discuss your loans further and to see if you qualify for this student loan forgiveness plan.

What Is PSLF?

Public Service Loan Forgiveness, or PSLF, is a student loan repayment program that eliminates student loan debt for those who work in the public service sector. It was created to incentivize borrowers to choose qualifying repayment plans that take longer to pay off but will save the borrower money in terms of interest.

Eligibility for loan forgiveness for these types of loans requires 120 qualifying monthly payments on the government’s Direct Loan program among other requirements that have changed recently. A “qualifying monthly payment” is defined as a full monthly payment made no later than 15 days after the due date under any qualifying repayment plan.

Summary of Updates and Changes

Due to the impact that COVID-19 has had on the economy, the U.S Department of Education is making temporary changes to PSLF for borrowers with loans through the Federal Family Education Loan Program (FFELP), Perkins loans, and more. Here are some of the notable changes that we will discuss in more detail.

  • If you have previously made payments on your student loans — Direct or not — you may be eligible for a loan repayment that is more generous.
  • To qualify for the Public Service Loan Forgiveness Program, you’ll need to consolidate your federal student loans into a Direct Consolidation Loan. 
  • Your past period of repayment will now count regardless of whether you made a payment that was past-due, paid in full, or not.
  • Periods of deferment or forbearance and periods of default on student loans continue to not qualify.

New, Temporary Rules for Qualifying Payments

The ED announced a few, temporary rules regarding qualifying payments on student loans. Under these rules, most notably, any prior period of repayment will be counted as a qualifying payment — it will count regardless of the loan program, repayment plan type, or whether or not the payment was made on time or even in full. Although, you must continue to have qualifying full-time employment in addition to making these payments.

These rules apply to all student loan borrowers holding Direct Loans, those who are in the Direct Loan Program after consolidating, as well as those who will consolidate into that program by October 31st, 2022. If you haven’t consolidated into a Direct Loan program, don’t wait — contact us at the National Student Debt Forgiveness Center for assistance.

How to Get Additional Qualifying Payments

Full-Time Employment — For Direct Loans. All payments count as qualifying payments so long as they are made during the calendar month in which you were working full-time for a qualifying employer. Credit is only given for periods of repayment after October 1st, 2007 — when the PSLF program was created. You must also file a Public Service Loan Forgiveness (PSLF) and/or Temporary Expanded PSLF (TEPSLF) Certification & Application for this time period in order to receive the credit.

Loan Consolidation — For Federal Family Education Loan (FFEL) Program loans, Federal Perkins Loans, or other types of federal student loans that are not Direct Loans. Any older loan programs, including those listed above, Federally Insured Student Loans [FISL], or National Defense Student Loans [NDSL] may be consolidated into a Direct Loan. If consolidated by October 31st, 2022, then payments made on those loans will count as qualifying payments.

Waived PSLF Requirements

As of October 6th, 2021, the ED also waived some of the PSLF requirements, which are in effect until October 31st, 2022. Here is a breakdown of some of the changes, as well as a reminder of what was left unchanged.

Due to these changes, if you’re unsure if you still qualify or if you think you qualify for PSLF now, get in touch with us at the National Student Debt Forgiveness Center for help.

Unchanged Requirements:

  • Must make 120 payments or the equivalent of the original loan.
  • Work a full-time job.
  • Have Direct Loans or consolidate other loans into a Direct Consolidation Loan.
  • Work in the government sector or for a 501(c)(3) not-for-profit, or another not-for-profit organization that provides a qualifying service

Changed Requirements:

  • Loan holders can receive credits for any repayment periods on their Direct Loans as well as their FFEL and/or Perkins Loans.
  • Any past payments that were made late or for less than the amount due will still count for non-consolidation loans.
  • Past payments for any loan plan will count for non-consolidation loans, even if they were on the wrong repayment plan.

Do I Qualify for Additional Loan Payments?

Depending on the types of outstanding loans you have, you could qualify for additional payments. Here’s how to find out if you qualify:

  1. Go to the Student Aid official website to see your Aid Summary — log in to your account in order to view the page.
  2. Scroll to the Loan Breakdown section of the page.
  3. Here, you will see each of your loans, even if they are paid off or consolidated.
  4. Expand ‘View Loans’ and click on the ‘View Loan Details’ arrow next to any given loan to see more information about each loan you’ve taken out.
  5. Direct Loans will always begin with the word “Direct”, Federal Family Education Loan Program loans will begin with “FFEL”, and Perkins Loans will include the word “Perkins”. Keep in mind that Parent PLUS loans are not going to be eligible under the PSLF limited waiver.
  6. If you need assistance or can’t find what you’re looking for, reach out to us at the National Student Debt Forgiveness Center.

At the National Student Debt Forgiveness Center, we are a team of Student Loan Repayment Program Consultants, offering student loan repayment and forgiveness assistance. If you’re interested in having your student loans forgiven or at least reduced or consolidated under the PSLF program, we can help you get started. Contact us today.

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