Education Department Announces Changes to Public Service Loan Forgiveness Program
This week, the U.S. Department of Education announced it will be overhauling the Public Service Loan Forgiveness (PSLF) program over the course of the next year, making changes that could move more than 550,000 public service workers closer to loan forgiveness. The changes will allow 22,000 borrowers with consolidated loans to be automatically eligible for $1.74 billion in forgiveness and will potentially qualify another 27,000 borrowers for $2.82 billion in forgiveness if they can certify additional periods of employment.
Changes announced this week include a limited waiver that allows all payments by student borrowers to count towards forgiveness, regardless of loan program or payment plan. Additionally, denied public service loan forgiveness applications will be reviewed for errors, potentially allowing borrowers to receive loan forgiveness credit.
Other changes include a simplification of the process to apply for PSLF, improvements in outreach and communication with PSLF-eligible borrowers, and a long-term commitment to improving the PSLF program through a negotiated rulemaking process.
The Department is expected to announce additional changes in the coming months.