NAICU Washington Update

Department of Education Provides Clarity on Public Service Loan Forgiveness

January 07, 2022

Last year, the Department of Education announced modifications to the Public Service Loan Forgiveness (PSLF) program known as the “limited PSLF waiver” due to the national COVID-19 emergency. In an effort to provide clarity for all borrowers, the Department provided updated information regarding the expectations for Federal Family Education Loans (FFEL) and Perkins Loan program operators as they seek to support borrowers navigating the limited PSLF waiver. 

For current FFEL and Perkins Loan borrowers to take advantage of the opportunity provided by the limited PSLF waiver, the following requirements must be met: 
  • A borrower must apply for a Direct Consolidation Loan that repays FFEL and/or Perkins Loans, or have had that loan disbursed, on or before October 31, 2022; and 
  • A borrower must submit a PSLF Certification and Application Form to the PSLF Servicer, have used the PSLF Help Tool on to generate such a form to be submitted, or request that the Department determine whether the borrower’s employer is qualifying or not on or before October 31, 2022.
It is also expected that FFEL and Perkins Loan program operators will provide complete, timely, and accurate information about the terms and benefits of student loans to ensure that borrowers are properly informed.

For borrowers who consolidate their loans or submit a consolidation loan application by October 31, 2022, the Department will provide credit toward PSLF for any month the borrower was in qualifying employment and was in repayment on the loans they consolidated, even if all their loans were not in repayment during a given month.

MORE News from NAICU