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Student loan forgiveness: public sector workers eligible in overhauled relief program

By Jessica Menton and Chris Quintana, USA Today, October 7, 2021

“On [October 6], the U.S. Department of Education announced sweeping changes to its Public Service Loan Forgiveness program after thousands of borrowers applied for forgiveness, with nearly all of them being rejected by the federal government.

“The government previously restricted eligibility for the Public Service Loan Forgiveness program to only certain types of federal student loans and specific repayment plans.

“However, through October 2022, borrowers who have made 10 years worth of payments while in a qualifying job — such as positions in federal, state or local governments … will now be eligible for loan relief no matter what kind of federal loan or repayment plan they have.

“Use this help tool of the Federal Student Aid website to check if you work for a qualifying employer: https://studentaid.gov/pslf/

If I qualify, what steps do I need to take?

“The agency will first loosen some of the rules that had prevented eligible borrowers from discharging their loans, via a limited waiver. […]

“The Public Service Loan Forgiveness waiver will be available to borrowers who have direct loans, Federal Family Education Loans, and Perkins Loans. 

“The department said it would [also] automatically credit borrowers who already have direct loans and have proved they work in an eligible field.”

Read the full article here, including waivers and basic information on federal student loan consolidation. (~5 min.)

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