The Department of Education (ED) formally unveiled details as to how the agency plans to rework the much-maligned Public Service Loan Forgiveness (PSLF) program. In referring to the program as an important but unmet promise of offering student loan debt forgiveness to public servants, ED aims to take a number of actions in the coming months to remedy the program’s high denial rate.
Specifically ED will offer, as a temporary opportunity, “a limited PSLF waiver” to give borrowers credit for prior payments they made that would not otherwise count toward PSLF. Any prior payments made while working for a qualifying employer will count as a qualifying payment, regardless of loan type or repayment plan.
Among the other departmental changes being developed in the coming months, ED will be seeking to simplify payment qualifications, reduce barriers for military service members enrolled in the program, review denied PSLF applications and correct processing errors, simplify and better communicate the application process, as well as continue work to overhaul the program through the ongoing negotiated rulemaking process.
“These changes are important steps toward a better and stronger PSLF program,” ED wrote in announcing the program’s impending reworking. “One that will move away from the current situation in which too few borrowers receive forgiveness, and too many do not receive credit for years of payments they made because of complicated eligibility rules, servicing errors or other technicalities.”
Stay tuned to Today’s News for more coverage of the PSLF program.
Publication Date: 10/6/2021