Exciting news today! The Department of Education has announced steps to overhaul the Public Service Loan Forgiveness program after receiving recommendations from SEIU and other industry advocates (see union-wide letter attached). PSLF forgives federal student loans for public-sector workers after 120 monthly payments. An estimated 550,000 student loan borrowers will have additional monthly payments credited towards PSLF loan forgiveness. 22,000 will be immediately eligible for loan forgiveness and 27,000 will likely be eligible for loan forgiveness after submission of employment certification.
A limited PSLF waiver period will run from now until October 31, 2022. In that time period:
- Student loan borrowers should consolidate older bank-based loans (pre-2010 federal loans) and submit or re-submit an application to have payments made under these loan types credited towards forgiveness.
- Student loan borrowers who have had ineligible monthly payment or employment certification issues should re-submit a PSLF form (StudentAid.gov/PSLF)
- In general, anyone with 10 years of public employment should apply or re-apply for PSLF.
- The Department may contact borrowers, but likely members will need to take action in order to benefit.
- Forbearance and deferment periods for active-duty service members will be counted as eligible payments for PSLF.
- A data match program will be developed for service members and federal employees so that they are automatically given credit towards PSLF.
- The Department will conduct an interal and external review of the program and review application denials.