It’s easier than ever to qualify for government loan forgiveness, but you’re running out of time
If you’ve worked in the public sector for 10 years or more, you may be able to have all of your college debt forgiven.
Public service work includes working for federal, state, local, tribal, or nonprofit organizations. If you have worked in the public sector, you may still qualify for a forgiveness even if those 10 years have not been served in a row.
The Department of Education has made temporary changes to the Public Service Loan Forgiveness (PSLF) program that make it easier for eligible federal student loan borrowers to receive forgiveness.
“Those who have served less than 10 years can now more easily receive recognition for past service for eventual forgiveness. These changes allow eligible borrowers to receive additional credit for forgiveness even if they were previously told they have the wrong type of credit White House said.
In the past, there have been complex eligibility restrictions, implementation failures, and poor advice given to borrowers, resulting in many being unable to get the credit they deserve for public service.
The Department of Education has also proposed regulatory changes to make the process smoother going forward. These proposals include allowing more payments to qualify for PSLF, including installments, lump sums, and late payments, and allowing certain types of deferrals and forbearances, such as PSLF. The Department of Education also suggested making sure the rules work better for non-permanent instructors, whose colleges must charge for their full-time employment.
“Dedicated officials are the lifeblood of democracy. They do the hard work essential to our country’s success—they protect us, educate our children, keep our streets clean, our lights on, and more,” said President Joe Biden.
You must apply by October 31, 2022. click here to find out if you are eligible.
The White House answers frequently asked questions
What counts as a government employer for the PSLF program?
Any US government agency at the federal, state, local, or tribal level is considered a state employer for the PSLF program. This includes employers such as the US military, public elementary and high schools, public colleges and universities, public child and family services, and special government districts (including entities such as public transportation, water services, bridge districts, or housing authorities).
What types of government jobs qualify for loan forgiveness under the PSLF program?
The specific job you do doesn’t matter as long as you are employed by a qualified employer. For example, if you are a full-time employee of a public school system, your employment would qualify for PSLF regardless of your position (teacher, administrator, support staff, etc.).
Can I get PSLF if I have more than one employer over the course of 10 years?
Yes. However, you must have one PSLF form showing that you were employed full-time by a qualified employer at the time you made each of the required 120 payments.
Does full-time volunteer service for a qualified employer count towards PSLF?
AmeriCorps or Peace Corps volunteer service counts. However, no other full-time volunteer service is eligible. You must be a full-time employee hired and paid by a qualified employer.
What happens if I make my final qualifying payment while working for a qualifying employer but then leave that job to work for a for-profit organization before claiming PSLF benefit? Am I still eligible for PSLF?
Yes, under the temporary changes, you are eligible for PSLF but must apply before October 31, 2022.
Are private education loans eligible for PSLF?
no Private education loans are not eligible for PSLF and cannot be consolidated into a direct consolidation loan.
Are defaulted direct loans eligible for PSLF?
Defaulted direct loans are not eligible for PSLF. However, a defaulted loan may be eligible for PSLF if you fix the default. Learn how to fix the outage through rehabilitation or consolidation.
Are Direct PLUS loans eligible for PSLF?
Yes. Like other direct loans, Direct PLUS loans are eligible for PSLF. Direct PLUS loans are given to college graduates and working professionals. Direct PLUS loans to parents may need to be consolidated.
Visit the Ministry of Education FAQ page of the Federal Office for Student Support if you have further questions.
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