Student Loan Forgiveness Updates
The deadline to apply for the Public Service Loan Forgiveness (PSLF) Waiver is coming up on Oct. 31st.
The PSLF waiver is a time-limited change to the PSLF Program rules that allows borrowers to receive credit for past periods of repayment that previously would not have qualified for PSLF. Applications for the waiver close on Oct. 31, 2022.
Those seeking to reduce or eliminate student loan debt have many avenues. Below is a breakdown of the difference between the standard PSLF program, the Temporary Expanded PSLF (TEPSLF) program, the PSLF waiver that closes Oct. 31st (sometimes called the "Biden waiver"), and the newly announced Student Loan Debt Relief Forgiveness for all student loans (not just public service loans).
- PSFL: PSLF is a program for people who work in public service in federal, state, tribal, or local government, or for a non-profit organization. It has 4 requirements that, if met, qualify you to receive federally tax-free loan forgiveness on any remaining loan amounts.
- Requirements:
- Have direct student loans
- Be on a qualifying repayment plan
- Have a certified qualifying employer
- Have made at least 120 payments with those stipulations
- Requirements:
- TEPSLF: Part of the Consolidated Appropriations Act, 2018, which provided a limited budget to help borrowers who have been in the wrong payment plans.
- Must switch to a qualifying repayment plan and make at least 12 payments in that plan to qualify
- No deadline, but the forgiveness runs out when the budget does
- PSLF Waiver (Biden Waiver): Allows borrowers with Federal Family Education Loans (FFELs) to consolidate into a qualifying direct loan in order to apply for PSLF programs.
- Must consolidate into a direct loan and then apply for PSLF
- Deadline is Oct. 31, 2022
- Student Loan Debt Relief Forgiveness: Not just for Public Service loans, but will apply to those making less than $125k/year.
- Borrowers making less than $125k/year ($250k/year for Married Filing Jointly) can expect to see anywhere from $10,000 to $20,000 in forgiveness in the future depending on their Pell Grant status
- Applications for forgiveness are open now
- Read more about this program on Your Money Line for up to date information
Want to know more about PSLF? Look back at our PSLF FAQ blog.
Don't forget, all Pension Fund members have access to free financial guides through Your Money Line. Your Money Line provides financial guides and resources to help you with tough financial questions including which PSLF programs you qualify for and how to apply.
*Please note this is for informational purposes only. Please consult your attorney, tax preparer or financial advisor before making any decisions about your financial matters.