How to apply: Submit the PSLF & TEPSLF Employment Certification form to FedLoan Servicing. Use the PSLF Help Tool to learn if your employer qualifies. Whose eligible: You’re eligible if you work full-time for the government, 501(c)(3) nonprofit organization, or other qualifying employers that provide a public service and have a Federal Direct Loan. The Limited PSLF Waiver offers an opportunity to get credit for FFEL Loan payments, late payments, and payments made under an ineligible repayment plan. In October 2021, the Biden Administration implemented more PSLF changes and temporarily fixed the “wrong loan” issue by expanding the PSLF Program once more to count payments toward FFEL Loans. It didn’t help people with government-backed bank loans known as Federal Family Education Loans. But the TEPSLF program helped only a handful more people. The Public Service Loan Forgiveness Program is the main pathway to applying for forgiveness, but few borrowers meet the program’s complicated requirements.įederal lawmakers tried to fix PSLF by temporarily expanding it to count payments made under the wrong repayment plan. There are three options to get your loans forgiven after working in public service for at least 10 years. Related: Student Loan Forgiveness for Federal Employees Please continue to explore these other avenues for relief. While Biden’s student loan cancellation program represented a significant effort to alleviate the burden of student debt on millions of Americans, its end does not mean the end of options for those struggling with student loan debt. Each offers its unique advantages and could be an effective route to reduce or even eliminate your student loan debt. You can still access programs like the Public Service Loan Forgiveness (PSLF) Program, Income-Based Repayment (IBR) Forgiveness, and the federal student loan repayment program. Despite the setback, remember that other options are available. Now that the Supreme Court has struck down Biden’s plan, borrowers can no longer seek relief through it. This approach, while aiming to target those in most need, left some feeling excluded. To qualify, borrowers needed an adjusted gross income below a certain threshold, depending on their filing status. The same legal challenge also restricted those with commercially-held FFEL Loans from accessing the program.Įligibility requirements also sparked debate. A lawsuit filed by six Republican-led states blocked the Education Department from proceeding with the plan, which aimed to wipe out nearly $400 billion in federal loans for over 40 million borrowers. This would have been a significant financial boon, especially amid the ongoing pandemic.īut implementation of the program faced obstacles. The relief could have reached as high as $20,000 for Pell Grant recipients. Borrowers stood to benefit from having their loan balances reduced by at least $10,000. The Supreme Court recently struck down President Joe Biden’s student loan relief plan, ending the promise of significant financial relief for many borrowers.īefore its legal challenges, Biden’s student loan cancellation program generated both excitement and controversy. Here’s how you can apply for the different student loan forgiveness opportunities. Department of Education estimates it has forgiven over $38 billion in loans for about 1.75 million borrowers since Biden took office. Also, they have extended the payment pause multiple times, which began under former President Trump.Īlthough federal student loan payments are set to resume as late as summer 2023, it’s important to recognize the progress made. They have waived repayment rules, delivered on promises made to public servants, and helped defrauded borrowers shed debt from shoddy, for-profit schools. The Biden administration has taken several actions to make it easier for borrowers to qualify for loan forgiveness. And that’s not even factoring in the hundreds of billions of dollars of debt forgiveness currently on hold while the Supreme Court decides the fate of his student debt relief plan. Since moving into the White House, he has delivered more debt relief to more borrowers than any other U.S. President Biden’s impact on student loan forgiveness has been historic.
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