URGENT ALERT from Congressman Danny K. Davis Temporary Public Service Loan Forgiveness Program Waiver Helps Public Servants Get Debt Relief from Federal Student Loans Apply before October 31, 2022

The PSLF Limited Waiver Has Already elped over 95,000Helped over 100,000 Borrowers Receive $6.1 Billion in Loan Forgiveness, with an Average Amount Forgiven of $61,848.

If you work in public service and have federal student loans, you may be eligible for additional debt relief through recent, temporary changes to the Public Service Loan Forgiveness (PSLF) program.  The PSLF program provides complete debt relief for qualifying federal student loans to public servants – such as government workers (e.g., teachers, nurses, police, firefighters) and workers at non-profit organizations (e.g., legal aid, social service agencies) – after making 120 qualifying payments while working in public service.  Unfortunately, initial implementation of the PSLF program created too many barriers for deserving applicants to gain credits toward forgiveness.  Many borrowers gave up in frustration.

New!  In October 2021, the Biden Administration announced an overhaul of the PSLF program to reform many of the implementation failures to help public servants qualify for federal student loan forgiveness.  The time-limited waiver period allows borrowers to receive credit for payments that previously did not qualify for PSLF.  These changes could mean thousands of dollars in debt relief to public servants.

Key Points  

• Borrowers can receive PSLF credit for past loan payments that would not normally qualify – whether or not you made a payment on time, for the full amount due, or on a qualifying repayment play.

• If you have FFEL, Perkins, or other federal student loans, you first need to consolidate your loans into a Direct Consolidation Loan to qualify for PSLF both in general and under the waiver.  Before consolidating, make sure to check to see if you work for a qualifying employer.

• Even if you were denied PSLF before, please use the PSLF Help Tool to see if you qualify now.

• Even if you USED to work in public service, APPLY before 10/31/22 to get your past credit now.

• Don’t wait to apply if you do not yet have 10 years of public service, APPLY NOW to get credit.   

• The qualifying employment requirement remains the same: federal, state, local or tribal governments, 501(c)3 nonprofit organizations, and other nonprofit organizations providing certain services.

• Periods of deferment or forbearance and periods of default still do not qualify as repayment EXCEPT that the current pandemic payment pause on student loans and certain military deferments may qualify.

How Do I Apply?

• Use the Department of Education’s Toolkit to see if you qualify or to learn the steps to take to qualify:  https://studentaid.gov/pslf/

• Limited-Time Waiver Fact Sheet:  https://www.ed.gov/news/press-releases/fact-sheet-public-service-loan-forgiveness-pslf-program-overhaul

Waivers Temporarily Available until October 31, 2022.

Apply Now!  Don’t Leave $$ Money on the Table $$