Changes to the Public Service Loan Forgiveness may grant 110,000 people loan cancellation.
If you qualify, you may want to act quickly.
Who is eligible?
The Public Service Loan Forgiveness (PSLF) program was established to help public workers to reduce their debt. After ten years of service you could qualify for PSLF. The Biden administration is working to remove barriers, making debt forgiveness a reality for many. Read more about it here.
Before the recent changes those with a qualifying job would be eligible if:
- Have been working full time (at least thirty hours a week)
- Have been repaying their loans “under an income-driven repayment plan”
- Have made at least 120 qualifying payments
You had to meet all three requirements in order to be eligible. Changes have been made to the second and third requirements.
The Department of Education stated that any prior repayment period can count as a qualifying payment. This is “regardless of loan program, repayment plan, or whether the payment was made in full or on time.”
A Federal Family Education Loan (FFEL) or a Federal Perkins Loan are not typically eligible for forgiveness. However, because of the changes, these loans can be consolidated and forgiven. Forgiveness for these loans will only last through October of this year.
If you believe you qualify, you must send a petition to the Department of Education before October 31, 2022.
The changes being made will also prevent this issue from occurring in the future. They also plan to implement a system that will alert you if you are eligible for debt cancellation at any point.
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