New Improvements to PSLF

Important Temporary Changes to Public Service Loan Forgiveness (PSLF)!

On October 6th, the Department of Education announced some important—but temporary—changes to PSLF which may have significant benefits to borrowers seeking to qualify for loan forgiveness.

As a reminder, qualifying for PSLF requires that borrowers be working for a qualifying public sector or non-profit employer while making qualifying payments on their federal loans. More information on PSLF is available on the federal Student Aid website.

Changes include:

    • Payments made on repayment plans other than income-driven repayment plans will count; including payments made in the past
    • Payments made to federal loans borrowed from private banks (FFEL) and Perkins loans that previously did not count towards PSLF will now retroactively count (FFEL and Perkins) would need to be consolidated into the Direct Loan program by October 2022
    • For those who have previously consolidated, payments made prior to consolidation may count towards the 120 payments required for forgiveness
    • Previously denied PSLF applications will automatically be re-reviewed for eligibility under the new guidelines
    • Borrowers who qualify for forgiveness under the new temporary guidelines who may have made excess payments can qualify for a refund

Some of these changes require that an applicant submit a PSLF certification form prior to October 2022 to qualify so borrowers in qualifying employment are encouraged to submit one prior to that date.

More information can be found in this Department of Education announcement.  Information is also available from the New York Times and the Institute for Student Loan Advice (TISLA).

As a reminder, these changes are temporary and may require borrowers to submit a PSLF certification form by October 2022 to qualify.

More information is available from the Department of Education or from your loan servicer.