Why the Public Service Loan Forgiveness program exists
The Public Service Loan Forgiveness program (PSLF), Section 401 of P.L. 110-84, provides a needed financial tool to support government and nonprofit service providers who help ensure the delivery of vital services to the public. It provides total loan forgiveness for those who make a substantial career commitment to public service, i.e., make 120 monthly payments on eligible loans while employed full-time in qualifying public service jobs.
PSFL Updates In Effect From July 1, 2023
As a result of negotiated rulemaking on PSLF, in October 2022 ED announced final regulations for the PSLF program that intend to deliver improvements for borrowers. These improvements make permanent some of the fixes included in the Temporary Waiver, and will go into effect July 1, 2023.
The new regulations will:
- Count more types of payment towards forgiveness, including late payments as well as credit for periods of ineligible forbearance and deferment if they make payments equivalent to what they would have owed under an IDR plan (including credit for periods where the borrower would have owed $0 monthly payments).
- Clarify which non-501(c)(3) organizations are qualifying “public service” organizations, and simplify what counts as “full-time employment.”
- Allow borrowers to count qualifying payments on Direct Loans before they consolidate their loans towards forgiveness, using a new approach to ensure consolidation does not wipe out past progress toward forgiveness.
- Formalize a reconsideration process for borrowers whose applications are denied.
- Simplify criteria to help borrowers certify qualifying employment.
- Help borrowers correct PSLF account problems.
We’re a PSLF Coalition Ally
Consisting of more than 90 organizations committed to supporting PSFL, the Coalition advances policies to ensure the program is accessible to borrowers and forgiveness is achievable for eligible public service professionals and works to expand outreach and education to eligible borrowers.
PSLF Coalition Resources
Head to the Public Service Loan Coalition’s resources page for free upcoming live webinars with expert panels on the information you need to know about earning PSLF.