September 8, 2022
Reasons to Take Advantage of PSLF Waiver
Nearly 37 million people are getting an additional four months of reprieve from payments. There have been seven extensions since the federal student loan payment pause went into effect in March 2020 due to the impact of the pandemic. If you or someone you know has student loans, here's what another extension of the payment pause means:
- Borrowers will have had 33 months without having to make a payment.
- The pause will be interest-free which means loan principals won't grow.
- Borrowers seeking forgiveness through Public Service Loan Forgiveness and income-driven repayment forgiveness will be closer to seeing the remainder of their debt canceled.
New Temporary PSLF Eligibility Rules
Recently, the Department of Education approved more than $10 billion in debt relief for over 175,000 borrowers who qualify through the Public Service Loan Forgiveness program. However, after the recent changes announced by the Biden Administration reviewing the new temporary requirements should be at the top of the forefront:- Payments on Direct, Perkins, or FFEL Loans
- Payments through any repayment plan (including Graduated, Extended, and others)
- Late or partial payments
- Can get forgiveness if not employed by a qualifying employer at the time of applying for forgiveness
- The period of service for TLF can count toward PSLF, as long as you certify employment for that period
Events Promoting PSLF Awareness and Enrollment
In addition, the administration is leading four Public Service Loan Forgiveness Days of Action, each focused on a different public sector, to encourage public servants across the nation to take advantage of temporary changes to the PSLF program. The department designated four Wednesdays - two in August and two in September as Days of Action:- August 24: Government Employee (Federal, State, Local, Tribal) Day of Action
- August 31: Educator Day of Action for teachers, professors, school staff, administrators, and other employees at all education levels
- September 7: Healthcare Professionals and First Responders Day of Action
- September 14: Private, Nonprofit Day of Action
