If you haven’t been tracking recent changes in the Public Service Loan Forgiveness (PSLF) program, I’m glad you’re reading this post. The Department of Education recently released a bombshell update that could be a great help to many borrowers. Please, please, please, keep reading. For some, this could mean hundreds of thousands in loan forgiveness.
The Department of Education and Congress has already been trying to help borrowers burned by the Public Service Loan Forgiveness program. The high rejection rate is downright legendary at this point. In response, Congress passed an emergency program called Temporary Expanded Public Service Loan Forgiveness (or TPSLF) in the Consolidated Appropriations Act of 2018. The program is rather limited and mostly focused on helping individuals qualify when they were in the wrong repayment plan.
Now for the good news. The Department of Education recently announced that borrowers can, in their words, “receive credit for past payments made on loans that would otherwise not qualify for PSLF.” The best part:
“Under the new rules, any prior payment made will count as a qualifying payment, regardless of loan type, repayment plan, or whether the payment was made in full or on time. All you need is qualifying employment.“
Borrowers still need to have qualified employment (+ working full time) and have Direct loans (or consolidate into Direct loans.)
You heard that right. And I don’t like writing in caps, but PLEASE ACT QUICKLY ON THIS OPPORTUNITY. IT’S TIME-SENSITIVE AND THE DEADLINES ARE COMING UP SOON. Don’t say I didn’t warn you!
Here is a link to the full announcement: https://studentaid.gov/announcements-events/pslf-limited-waiver.
If you need help navigating the application process, contact us today.