Public Service Loan Forgiveness Program
Feb 09, 2022
Public Service Loan Forgiveness Program Offers Limited Waiver Through Oct. 31, 2022
The Consumer Financial Protection Bureau (CFPB) offers resources to help public-service employees who are federal student-loan borrowers learn how to apply and qualify for loan forgiveness during a temporary waiver period that runs through October 31, 2022. During this period, borrowers may receive credit for past payments on student loans that would not otherwise qualify for public-service loan forgiveness (PSLF). The U.S. Department of Education announced these temporary changes, according to the Federal Student Aid website, “as a result of the Covid-19 national emergency.”
However, there are some requirements borrowers must meet to receive credit for past repayments on loans that would otherwise not qualify for forgiveness. Borrowers who have Federal Family Education Loans (FFEL), Perkins, or other federal student loans will need to consolidate their loans into a Direct Consolidation Loan. They also must work for a qualifying employer. Under the temporary rules, any prior period of repayment will count, regardless of the loan program, repayment plan, or whether the payments were made in full or on time.
Borrowers who are employed by the government, qualifying not-for-profits, and not-for-profits providing a qualifying service may be eligible. The Consumer Financial Protection Bureau offers guides regarding loan forgiveness for many types of public-service workers, including AmeriCorps and Peace Corps volunteers, teachers, public-service employees, and first responders.
Learn more about the limited-waiver opportunity at the Consumer Financial Protection Bureau (CFPB) and at studentaid.gov/announcements-events/pslf-limited-waiver.
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