New Options For Student Loan Forgiveness

Do you have student loans and are part of the public student loan forgiveness (PSLF) program? Then you’ll want to listen up!

If all stays current, Americans are expected to start repaying their student loans in May 2022. This is after a 25-month nationwide forbearance due to Covid-19.

There are important updates for anyone who is a part of the Public Student Loan Forgiveness program, also known as PSLF.

Let’s start with the basics. If you qualify for the PSLF, you work for a government or non-profit employer. This includes teachers, firefighters, nurses and other public service workers. But eligibility requirements don’t stop there.

Now, ya’ll know nothing ever comes easy or free. PSLF forgives the remaining balance on Direct Federal Loans after a borrower makes 120 qualifying monthly payments while working for a qualifying employer, and you must be working full time or at least 30 hours per week for a qualified employer.

Also, there are specific student loans, like private student loans that aren’t eligible for PSLF.

Now, on to the juicy information — the updates!

Beginning in April 2022, borrowers will be able to use an interim online submission process to request reconsideration of PSLF and TEPSLF qualifying employment or qualifying payment determinations. Meaning, if a borrower feels their account was handled incorrectly, they can submit one or more reconsiderations to see if their employer qualifies for PSLF or if any previous payments that they made could qualify for PSLF.

It is important to note that the reconsideration process is only a government review and is only intended to rectify accounts that were handled incorrectly.

More details surrounding PSLF reconsideration will be available in the coming months, so stay up-to-date with Greenwood Daily.