Public Service Loan Forgiveness Limited Waiver Opportunity

On Oct. 6, 2021, the U.S. Department of Education (ED) announced a change to Public Service Loan Forgiveness (PSLF) program rules for a limited time as a result of the COVID-19 national emergency. Throughout the pandemic, ED has provided a variety of benefits to borrowers. Now, for a limited period of time, borrowers may receive credit for past payments made on loans that would otherwise not qualify for PSLF.

The announcement has generated great interest and many questions, including how it affects you. The ED is hard at work reviewing and updating student loan accounts in line with these major changes. Please read this letter from Richard Cordray, Chief of Federal Student Aid.

New Rules for Qualifying Payments

Under the new rules, any prior payment made will count as a qualifying payment, regardless of loan type, repayment plan, or whether the payment was made in full or on time. All you need is qualifying employment.

This change will apply to student loan borrowers with Direct Loans, those who have already consolidated into the Direct Loan Program, and those who consolidate into the Direct Loan Program by Oct. 31, 2022.

Unchanged Requirements

  • Employed by government, 501(c)(3) not-for-profit, or other not-for-profit organization that provides a qualifying service
  • Work full-time
  • Have Direct Loans or consolidate into Direct Consolidation Loans

Parent PLUS loans are not eligible under the limited PSLF waiver.

Information provided Department of Education

Stay Connected

Use the form below to sign up for my newsletter and get the latest news and updates directly to your inbox.