PSLF Loan Forgiveness Changes Effective July 1, 2023
Federal Student Aid Announces Regulatory Updates
Effective July 1, 2023, the Public Service Loan Forgiveness (PSLF) Program has undergone regulatory changes implemented by Federal Student Aid. These adjustments aim to streamline the forgiveness process and bring greater equity to borrowers serving in public service roles.
Key Updates for Borrowers
The most significant change is the expansion of eligible payments. Borrowers can now count payments made under any federal loan program or repayment plan, including periods of forbearance and deferment. This change retroactively applies to payments made from October 1, 2007, onward.
Additionally, borrowers can apply for a temporary waiver that allows them to receive credit for past payments that previously did not qualify under PSLF rules. This waiver expires on October 31, 2023, so borrowers are encouraged to apply as soon as possible.
To learn more about these changes and how they impact borrowers, visit the PSLF Help Tool or contact your loan servicer for assistance.
How to Apply for PSLF
Borrowers who work in public service and meet the eligibility requirements can apply for PSLF by completing the PSLF Form. The form is available online or by mail, and instructions on how to submit it are provided on the PSLF website.
Once the form is submitted, it is reviewed by the loan servicer. If approved, the borrower will receive notification of their eligibility for forgiveness, and their loans will be discharged. The entire process can take several months, so borrowers are advised to apply as early as possible.
These changes represent a significant step forward in making PSLF more accessible and equitable for borrowers. By expanding eligibility and offering a time-limited waiver, Federal Student Aid is making it easier for public service employees to receive the loan forgiveness they deserve.
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