WASHINGTON — As part of the Biden Administration’s plan to tackle student debt, the public service loan forgiveness program is also temporarily expanded–and the time to act is now.
THE QUESTION
What is the Public Service Loan Forgiveness waiver, who qualifies, and how do I apply?
THE SOURCES
WHAT WE FOUND:
While the application for broad student loan forgiveness won't be available until the end of October, those working in the public sector can act now. More people who’ve worked in public service can apply for total loan relief, or at least make progress towards it, but just through the end of this month.
“You've done the work of public service, scoop this up and be done with your loans,” said Melissa Byrne, student loan forgiveness advocate with We, the 45 Million.
The PSLF program is for borrowers in federal, state, local, or tribal government, and includes a variety of fields: Military, public schools, public child and family service agencies, and special government districts like transportation or housing authorities, no matter the specific job.
Government contractors are not included, but AmeriCorps and Peace Corps jobs are eligible.
The Department of Education website explains, the PSLF program can wipe out remaining Federal Direct student debt after 120 qualifying monthly payments, and 10 years of working full time in a qualified job. However, the White House website explains because of issues with the program’s eligibility and implementation in the past, “many borrowers have not received the credit they deserve for their public service.” Hence, the current waiver.
“You might have been denied in the past, but because of the waiver, it's really important that you go and apply,” said Byrne.
Normally, borrowers only get credit or forgiveness for direct loans under specific repayment plans. Only on-time, total-amount-due payments, while working full time for a qualifying employer, count. Just until October 31st, FFEL and Perkins loans can be eligible,and repayments under any repayment plan, even if they were late or for less than the amount due, or before consolidation, can count toward the 120 required payments. An applicant doesn’t need to be currently working for the qualified employer, and teachers can now count additional time of service toward the PSLF requirements.
“People left and right are realizing that they have the 120 payments,” said Byrne, “and even if you don't have the 120 payments yet, if you get your application in, it brings everything up to date and gets you on track to get it.”
There’s a big effort from advocates to get the word out on this: a group of lawmakers, asking for the program to be expanded, told the Secretary of Education that only a percentage of people who could benefit from the program have applied.