The Department of Education (ED) announced on Wednesday that it will begin reconsidering denied applications for the Public Service Loan Forgiveness Program (PSLF) on a first-come, first-served basis — an initiative made possible with funding from the fiscal year 2018 omnibus spending bill.
The spending bill, released in March, included an increase of $3.9 billion for ED to support funding for several student aid programs. Of those funds, $350 million was set aside to expand the PSLF program to borrowers who made some or all of their 120 monthly payments under extended or graduated repayment plans, instead of an approved plan.
Currently, a borrower would only be considered eligible for forgiveness under PSLF if they were enrolled in a standard 10-year repayment plan, an income-based repayment plan, an income-contingent repayment plan, or another repayment plan if the monthly payment was no less than the amount that would have been paid under the standard plan.
This new initiative, which ED dubbed Temporary Expanded PSLF (TEPSLF), would expand the list of qualifying repayment plans to include the Graduated Repayment Plan, Extended Repayment Plan, Consolidated Standard Repayment Plan, and Consolidated Graduated Repayment Plan. A borrower’s application would be reconsidered, according to ED, if it was previously denied because “some or all of the payments were not made under a qualifying repayment plan for PSLF.”
ED wrote that applications will be reconsidered on a first-come, first-served basis as “funds for this opportunity are limited,” adding that “once funds under this opportunity are depleted or other criteria are met, the program will end.”
ED urged borrowers who believe they may qualify for this opportunity to send an email requesting a reconsideration to TEPSLF@MyFedLoan.org.
Publication Date: 5/23/2018