Public Service Loan Forgiveness (PSLF) just announced significant changes. These changes are projected to impact millions of borrowers and result in billions of loan forgiveness. If you work in a school, government, or non-profit and have Federal student loans taken out before 2010; then these changes could be game-changing for you.

Many borrowers will get months or even years of additional credit, and some will qualify for immediate forgiveness.

• For example, if you have worked for an eligible employer for at least the last ten years and made 120 payments, you could apply and have your loans FORGIVEN immediately.

What was Fixed?

• Counting all previous payments:

• Payments made on the wrong repayment plan

• Payments made on FFEL Loans

• Payments made on previous Direct Loans

• Review Denied PSLF Applications and Identify and Correct Errors in PSLF Processing

When?

• The PSLF Waiver expires on 10.31.2022, so you must have everything submitted by that date. But I would not wait.

What type of loans do I have?

• It’s common for borrowers not to know what kind of federal loans they have. You can see what loans you have by logging into your account on StudentAid.gov, going to the My Aid page (StudentAid.gov/aid-summary), and scrolling down to the Loan Breakdown section. There, you’ll see a list of each loan you borrowed, even if you have paid the loan off or consolidated it into a new one. Direct Loans begin with the word “Direct.” Federal Family Education Loans start with “FFEL,” and Perkins Loans include “Perkins” in the name.

• This program does not cover loans taken out by parents (Parent Plus).

What if I have private student loans?

• If your loans are not listed on StudentAid.gov, you have private student loans, which are not eligible for loan forgiveness. However, if your interest rate is above 4%, you can likely refinance and save money. Click here to check your rate in 2 minutes.

What do I need to do?

1. What loan type do you have?

2. If all your loans are already Direct Loans, then you can move on to step 2.

3. If you have any FFEL or Perkins loans, you must submit a consolidation application of all your loans to a Direct Consolidation Loan. After the consolidation is complete and all your loans are on the Direct Loan program, move on to step 2.

4. Submit a PSLF Application

5. The PSLF Help Tool is being updated in the coming months to process applications for users with FFEL and Perkins loans. In the meantime, you can request a loan consolidation, but a PSLF application through the tool may not be available in the short term.

Please help me share this news with friends and colleagues that work at schools, governments, and non-profits as you have to apply to benefit.

Frequently Asked Questions

There is no assurance that the techniques and strategies discussed are suitable for all borrowers or will yield positive outcomes. None of the information in this document should be considered as tax advice. You should consult your tax professional for information concerning your individual situation.