The U.S. Department of Education (ED) released proposed regulations to the Public Service Loan Forgiveness (PSLF) program and other programs in an effort to make student loans more affordable. The proposed PSLF changes would ease eligibility requirements, allowing for expanding borrower access to the PSLF program.
- Qualifying payments could include lump sum and late payments.
- Certain types of deferment and forbearances could qualify towards forgiveness (e.g., for cancer treatment, Peace Corps work and military service).
- The full-time employment criteria could be simplified to a minimum of 30 hours per week.
- A formal reconsideration process could be available for borrowers with denied applications.
The proposed rules are open for public comment for 30 days from July 13, 2022 so ED may alter them before they publish the final rules by Nov. 1, 2022. The new regulations will take effect July 1, 2023.
It’s important to note that the limited PSLF waiver remains the best option for borrowers pursuing PSLF!
Last fall, a limited PSLF waiver was introduced to improve access to forgiveness for Direct student loan borrowers. But it’s only available through Oct. 31, 2022. Federal Family Education Loan (FFEL) program borrowers who are interested should investigate whether they can benefit from the limited waiver through consolidating into the Direct Loan program and applying for PSLF before Oct. 31.
