If you’re a student or know someone who is, this article will go over important information on student loans. The government has put a moratorium on debt payments over the past few years and is considering whether to end it or extend it further. So keep reading below to find out how this could affect you. 

Public Service Loan Forgiveness

According to the US Department of Education, there are more than 113,000 people with student loan debt that have been forgiven. This runs to a total of $6.8 billion worth of loans forgiven, all made possible through the Public Service Loan Forgiveness program (PSLF). 

In October 2021, the PSLF program expanded debt relief opportunities to qualified teachers, nurses, government workers, and firefighters. This was in an effort to help more public servants with their loan payments. 

The federal student loan payment freeze has been extended to September 1st, making it two years since students have had to make payments. President Biden’s administration is also considering more sweeping student loan forgiveness. 

Updates To The PSLF Program 

The PSLF began in 2007 and was created to help public servants pay off their loans more easily. In order to be eligible, a public servant must have already made 120 qualifying student loan payments. But since 2008, 99% of students who applied prior to the October expansion were denied. 

However, a new waiver program was added to the PSLF program. The Department of Education wants to make it easier for people to enroll in PSLF and receive benefits. Part of this effort includes finding clerical errors made by loan servicers and also expanding the types of loans that qualify for forgiveness. 

In addition to improving the enrollment process, the PSLF program is also enhancing benefits for people in the military, such as using time spent on active duty as a substitution for loan repayment. 

Who Qualifies For PSLF

In order to qualify for PSLF, a person must be a full-time worker for a state, federal, or local government agency. This can include both the military and nonprofit companies. The person must also have direct or other federally backed loans that have already been consolidated into direct loans. 

Expansion Of Eligibility 

More types of loans and payment plans are now included under the PSLF’s loan forgiveness policy. By numbers, this expansion of eligibility includes 550,000 additional borrowers now. 

If you’re curious to know if you qualify, start by filling out the limited waiver. This waiver helps you consolidate different kinds of loans or prove periods of employment for credit.

Take Advantage 

Now that you have detailed information about the updates to the PSLF program, do the leg work to find out if you qualify for more loan forgiveness.