Time’s Running Out on the Temporary Expanded Public Service Loan Forgiveness

Last year the US Department of Education announced temporary changes to the PSLF Program. With these changes, borrowers receive the following benefits, but this opportunity ends on 10/31/2022!

The PSLF Program allows a borrower to receive forgiveness on Direct Loans after making 120 qualifying monthly payments under a qualified repayment plan while working full-time for a qualifying employer. Any balances forgiven under this program is not taxable income by the IRS. If you qualify for forgiveness or an increase in eligible payments towards forgiveness, you must take action before the end of this month.

Here is a summary of the temporary changes:

1. The qualified payments under TEPSLF have been expanded to include payments made under Graduated Repayment, Extended Repayment, Consolidation Standard and Consolidation Graduated Repayment (all non-IDR plans.)
2. Repayment Periods with a FFEL or Perkins Loans (or other older loan programs) while working full-time for a qualifying employer can now count, but only if these loans are consolidated into a Direct Loan and you submit your PSLF Form by 10/31/2022.
3. Past repayment periods will count even if the payment was late or partial. All payment periods under the Covid Pause also counts. But periods of default or in-school deferment does not count.
4. Some deferment periods will count, including any deferment prior to 2013, and economic hardship deferments after 1/12013.
5. Forbearance periods of 12 consecutive months or greater, or 36 cumulative months or greater will now count.

To take action on your loans, contact your servicer, or go online to studentaid.gov. I’ve also found this reddit thread to be helpful in navigating the ins and outs of PSLF and the expanded Program.

Our attorneys are also available to help with your specific situation. If you have questions or need help contact us right away at 508-232-4633, or email our Executive Director at maegan@madrf.org.