The limited Public Service Loan Forgiveness (PSLF) waiver made it easier for federal student loan borrowers to be eligible for a forgiveness underneath the program. Eligible borrowers received a one-time account adjustment, receiving credit for payments that did not previously qualify toward the 120-payment requirement.
The limited waiver expired on October 31, 2023, however. If you missed the deadline, here are a few steps you can take to deal with your student loans and get some respite.
1. Watch for an Income-Driven Repayment Adjustment
When you might not have taken advantage of the PSLF waiver, you might still get credit toward forgiveness on an income-driven repayment (IDR) plan. The Department of Education can make a one-time adjustment to include the next payments toward your eligibility:
- Any months in a repayment status, whatever the payments made, loan type or repayment schedule
- Twelve or more months of consecutive forbearance, or 36 or even more months of cumulative forbearance
- Months spent in economic hardship or military deferments after 2013
- Months put in any deferment (with the exception of in-school deferment) just before 2013
- Any time in repayment on earlier loans prior to consolidation of those loans into a loan consolidation
If you've accumulated 240 or 300 monthly payments (according to your IDR plan) with the adjustment, you will get automatic forgiveness. If not, you'll be that much nearer to forgiveness.
2. Watch for Some PSLF Waiver Details being Permanent
Shortly prior to the limited PSLF waiver expired, the Department of Education announced that it would make some aspects of the waiver permanent, along with some other updates towards the program, from July 2023.
More specifically, here's what is expected to become implemented:
- PSLF-eligible borrowers will receive credit for payments that are made late, in installments or in a lump sum payment.
- Certain periods in deferment or forbearance will count toward PSLF, particularly in instances where borrowers made payments equivalent to what they might have owed at the time.
- When you consolidate your loans to enter the PSLF program, you'll get a weighted average of existing qualifying payments toward eligibility for forgiveness.
- There is a single standard of full-time employment at 30 hours a week. Employers of adjunct and contingent faculty must provide credit with a minimum of 3.35 hours of work for every credit hour taught.
- Qualifying employers will be able to certify employment for any contractor if that person is providing services that, by state regulations, can't be filled or supplied by a worker of that organization.
3. Make an application for PSLF
There are already requested the PSLF program, now is a great time to get started. To qualify, you must satisfy the following criteria:
- Work full-time for a government agency or eligible nonprofit organization
- Have direct loans, or consolidate your other federal loans into a direct loan
- Repay your loans with an IDR plan
- Make 120 qualifying payments
If you don't curently have direct loans with an IDR plan, go ahead and take initial step to consolidate your loans, if required, and get on one from the four IDR plans that are now available.
You can also use the PSLF help tool to find out if your employer qualifies. You'll also use the tool to certify your employment each year and generate your PSLF form, so you can sign it and send it in to your PSLF loan servicer.
4. Consider Other Forgiveness and Loan Repayment Assistance Programs
The PSLF program is just one of many ways education loan borrowers can obtain relief using their student education loans. Other jobs that qualify you for forgiveness or repayment assistance include:
- Teachers
- Nurses
- Other health care professionals
- Military service members
- Public defenders
Additionally, many private employers offer student loan repayment assistance being an employee benefit. Depending on your work, research your options online to get an idea of what's available for you.
Will the PSLF Waiver Be Extended?
The Department of Education has not announced intends to extend the PSLF waiver, and those borrowers who overlooked can take advantage of a number of its benefits in July 2023 once the new PSLF rules get into effect.
Additionally, note that the Biden administration's general federal student loan forgiveness plan, which is currently wrapped up in legal battles, has no impact on the PSLF situation since it is a separate forgiveness program.
Make a Plan to Tackle Your Student Loan Debt
For those who have federal student education loans, you likely haven't required to make monthly payments since March 2023. The payment moratorium will remain in position while Biden's education loan forgiveness plan remains in legal battles, and for a while afterward.
When you may not yet desire to make monthly obligations, review these along with other actions you can take to enhance the chances of you getting help paying down your student loans and becoming relief, be it forgiveness, lower payments, repayment assistance and more.