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Public Service Loan Forgiveness (PSLF) Program Updates

Do you have federal student loans? Have you been thinking about the Public Service Loan Forgiveness Program (PSLF)? Have you encountered problems accessing PSLF in the past?

The PSLF Program forgives the remaining balance on federal Direct Loans after you have made 120 qualifying payments while working full-time for a qualifying employer. The U.S. Department of Education (ED) recently announced a temporary, but significant waiver to PSLF program rules. The waiver, called the “Limited PSLF Waiver,” allows those borrowers who had the wrong type of loans or payments to get credit for those past periods. The waiver is available to borrowers until October 31, 2022. You can learn more about the waiver and if it applies to you hereIf you previously applied for PSLF and were denied because of your loan type, we encourage you to try again.

Here are some of the key improvements available under the Limited PSLF Waiver:

  • Borrowers can receive credit for past periods of repayment on loans that would otherwise not qualify for PSLF. If you have Federal Family Education Loans (FFEL), Perkins loans, or other federal student loans, you will need to consolidate your loans into a Direct Consolidation Loan to qualify for PSLF both in general and under the waiver. Before consolidating, make sure to check to see if you work for a qualifying employer using the PSLF Help Tool.
  • Past periods of repayment will now count whether or not you made a payment, made that payment on time, for the full amount due, on a qualifying repayment plan.

The waiver is available to borrowers until October 31, 2022. To take advantage of the waiver, you need to:

  1. If you don’t have one already, register for an FSA ID at StudentAid.gov/fsa-id/create-account.
  2. Have or get Direct Loans (including through loan consolidation). You can consolidate your loans if you need to at StudentAid.gov/consolidation.
  3. Submit a PSLF form to certify employment for PSLF that you want credit for through the waiver. You can generate a PSLF form at StudentAid.gov/pslf.
  4. In the PSLF Help Tool, it’s important to use the appropriate Federal Employer Identification Number (EIN). For our employees, please use the following when searching for our agency,(72-0564834). Please note that some federal agencies have the same EIN, and you may see several agencies in the PSLF Help Tool once you put in the EIN, be sure to selectour agency from the list. After the PSLF Help Tool gives you a PDF, please sign and date it and submit it to HR4U@sba.gov with “Payroll” in the subject line.

There’s no specific application for the waiver. Once borrowers have submitted PSLF forms and/or consolidated into the Direct Loan program, they will be automatically opted in and receive forgiveness if they qualify or an increased qualifying payment count.

Remember: this opportunity is time sensitive. Some borrowers will need to consolidate their loans and/or submit a PSLF form. It’s important for you to take the steps necessary to qualify for the Limited PSLF Waiver before October 31, 2022. Learn more about the Limited PSLF Waiver at StudentAid.gov/PSLFWaiver.