ED to Begin Reconsidering Denied PSLF Applications on First-Come, First-Served Basis

By Joelle Fredman, NASFAA Staff Reporter

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 [email protected].


Publication Date: 5/23/2018

Carolyn C | 2/26/2019 11:15:46 AM

Just curious; is the TEPSLF still in business or has funding run out (as I ask this in February 2019)? I know of a borrower who was recently told that her repayments weren't in an eligible plan? She applied for PSLF, got the original letter indicating she might be eligible and then an email telling her to contact Fed Loan Servicing, which she did and then was told on phone by Fed Loan Servicing that her payments don't count due to not being in an eligible plan. She's so discouraged, doesn't want to pursue anything further but I'm trying to encourage her to, but not sure if TEPSLF is a possibility still.....she's a public school Adaptive P.E. teacher who's been in repayment for almost 9 years

Anita G | 8/24/2018 6:9:35 PM

Yes, what about the students who are on the Graduated Repayment Plan with FedLoan and was told that they did not qualify for PSL and they are still working at a qualified workplace. Can they now apply?

Tracy H | 5/24/2018 7:52:12 PM

What about the students that never applied because they were told their repayment plan wasn't eligible? Are they only going to reconsider denied applications? That doesn't seem fair.

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