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There is no shortage of news in the student loan realm.
You may have seen the recent article in NPR detailing changes to public service loan forgiveness, and how Navient and FedLoan are exiting federal loan servicing.
PSLF is changing and it's great news for some of you!
While the rule negotiating process continues for more long term changes, today ED released information about a temporary expansion of PSLF. You can read the releases at these links:
https://www.ed.gov/news/press-releases/us-department-education-announces-transformational-changes-public-service-loan-forgiveness-program-will-put-over-550000-public-service-workers-closer-loan-forgiveness
https://www.ed.gov/news/press-releases/fact-sheet-public-service-loan-forgiveness-pslf-program-overhaul
https://studentaid.gov/announcements-events/pslf-limited-waiver
In summary ED is going to give credit toward PSLF to anyone who was working in the public sector but had the wrong type of loans or was on the wrong type of repayment plan. Even if the payments were made on FFEL that have since been consolidated to be eligible for PSLF. The current expansion is only allowed through October of 2022. Future changes will be made from the rule negotiations currently underway. It's very likely that many of these changes will be permanent, however due to the administration making this choice under executive authority, they has to put a short term date on the current expansion.
What do you need to do?
ED has indicated that they will automatically review the accounts of borrowers who have provided employment certification for periods that were not counted toward forgiveness. If you have not done so you need to get an employer certification for every qualifying public service employer you have worked (since 2007) for completed and submitted to Fed Loan Servicing. Do this now...like today. Don't procrastinate, because it might take time to get all the forms completed by old employers. Even if you weren't making payments on those old loans because of forbearance or deferment, still get that employment certified. The review is going to be HUGE undertaking so get your forms it so you're not left out.
If you have still FFEL loans, then you will need to consolidate them into the Direct Loans program. Most of you have already done that, since in our consultations in the past we have identified that we needed to do so in order for the new payments to count toward PSLF. However, it's worth pointing out that ED only has the authority to cancel Direct Loans, so if you still have FFEL and think you're going to get forgiveness from public service work, then you should consolidate right away.
Helpful Forms for you
Below is the link to get the PSLF employer certification form. It's under Forgiveness and titled, "Public Service Loan Forgiveness (PSLF) & Temporary Expanded PSLF (TEPSLF) Certification & Application"
https://studentaid.gov/repayment-forms/library
You may have seen the recent article in NPR detailing changes to public service loan forgiveness, and how Navient and FedLoan are exiting federal loan servicing.
PSLF is changing and it's great news for some of you!
While the rule negotiating process continues for more long term changes, today ED released information about a temporary expansion of PSLF. You can read the releases at these links:
https://www.ed.gov/news/press-releases/us-department-education-announces-transformational-changes-public-service-loan-forgiveness-program-will-put-over-550000-public-service-workers-closer-loan-forgiveness
https://www.ed.gov/news/press-releases/fact-sheet-public-service-loan-forgiveness-pslf-program-overhaul
https://studentaid.gov/announcements-events/pslf-limited-waiver
In summary ED is going to give credit toward PSLF to anyone who was working in the public sector but had the wrong type of loans or was on the wrong type of repayment plan. Even if the payments were made on FFEL that have since been consolidated to be eligible for PSLF. The current expansion is only allowed through October of 2022. Future changes will be made from the rule negotiations currently underway. It's very likely that many of these changes will be permanent, however due to the administration making this choice under executive authority, they has to put a short term date on the current expansion.
What do you need to do?
ED has indicated that they will automatically review the accounts of borrowers who have provided employment certification for periods that were not counted toward forgiveness. If you have not done so you need to get an employer certification for every qualifying public service employer you have worked (since 2007) for completed and submitted to Fed Loan Servicing. Do this now...like today. Don't procrastinate, because it might take time to get all the forms completed by old employers. Even if you weren't making payments on those old loans because of forbearance or deferment, still get that employment certified. The review is going to be HUGE undertaking so get your forms it so you're not left out.
If you have still FFEL loans, then you will need to consolidate them into the Direct Loans program. Most of you have already done that, since in our consultations in the past we have identified that we needed to do so in order for the new payments to count toward PSLF. However, it's worth pointing out that ED only has the authority to cancel Direct Loans, so if you still have FFEL and think you're going to get forgiveness from public service work, then you should consolidate right away.
Helpful Forms for you
Below is the link to get the PSLF employer certification form. It's under Forgiveness and titled, "Public Service Loan Forgiveness (PSLF) & Temporary Expanded PSLF (TEPSLF) Certification & Application"
https://studentaid.gov/repayment-forms/library
