+ What is the PSLF waiver (please explain simply)?

Yes, all of this can be complicated. Here is my best shot at explaining it as simply as possible.

• The government wanted to help public servants with their student loans. So they started PSLF in 2007.
• People with certain employers (like schools) could get their student loans forgiven after 10 years of payments.
• The government messed up. (Not telling people the rules, giving wrong info, making the process difficult, and other issues.)
• People (like teachers) were not getting the loan forgiveness like intended, even those who paid loan payments for 10 years.

So...

• They announced the PSLF waiver to fix these problems in 2021.
• Now payments (or loans) that were not technically eligible can now be counted.
• But, this is for a limited time!
• You must take action before the deadline to benefit from the "fix" if this applies to you.
• The deadline is October 31, 2022!

For those who already signed up for PSLF...

• Shouldn't have to do anything.
• The Dept of Education will check your loans automatically to see if additional payments would count.
• You should receive correspondance (email/mail) about your new payment counts.
• For some, loans will be forgiven immediately based on the new rules! For others, the time to get forgiveness may or may not shorten.

For those who HAVE NOT signed up for PSLF...

• Will need to sign up for PSLF before the deadline to get any previous payments to count if these new rules will benefit you.
• For some scenearios, loans will be forgiven immediately if they take the appropriate steps.
• For other scenerios, the time to pay until forgiveness will decrease compared to if they signed up no without the limited time waiver.
• So it is important to see if this benefits you so you can take the appropriate steps before the deadline.

+ What qualifications were needed to be eligible for the orginial PSLF rules?

All of these "boxes" needed to be checked to be eligible. If you didn't have even one, then your application for forgiveness would be denied.

--Work for an eligible employer

--Work full time.

--Have the correct loans (specifically Direct federal loans)***

--Be on the correct repayment plan (specificaly any income-driven plan or the standard 10 year plan)***

--Make 120 "qualifying" student loan payments while working for an eligible employer (payments do not have to be consecutive).

***These two qualifications are being waived until the October 31, 2022 PSLF waiver deadline.

+ Which of these qualifications are now being "laxed" due to the waiver?

--Have the correct loans (specifically Direct federal loans)

You still have to have Direct federal loans going forward, but if you didn't have the correct loans (i.e. FFEL loans or Perkins Loans) you can take the step to consolidate into Direct loans (before the deadline) and then your payments for those loans will be considered "qualified" when they wouldn't normally.

--Be on the correct repayment plan (specificaly any income-driven plan or the standard 10 year plan)

Any payments on the extended plan or the graduated plan would not count under the original rules. But if you sign up for PSLF before the waiver deadline, payments toward these repayment plans (and any other repayment plan) will now count toward your 120 qualified payment total needed for forgiveness.

+ Do I have to be working for an eligible public service employer when I apply for loan forgivess under PSLF?

Before the waiver existed - Yes

Today until the waiver deadline - No

After the waiver deadline - Yes

This means there are people out there who worked for an eligible public service job while paying student loan payments for 10 years who no longer work at that type of job who can sign up for PSLF before the October 31st deadline and get their reamaining student loans forgiven.

If they wait to do this after October 31st, they will be out of luck.

+ Can I consolidate my FFEL student loan(s) into a Direct loan and have my payments count toward PSLF?

Yes, as long as you consolidate and apply for PSLF before the October 31st Deadline.

In fact if you are in this situation, you are one of the main targets of who the Dept of Education is trying to help with the PSLF waiver.

+ Can I consolidate my Perkins loan(s) into a Direct loan and have my payments count toward PSLF?

Yes, as long as you consolidate and apply for PSLF before the October 31st Deadline

+ Can I consolidate my Parent PLUS loan(s) into a Direct loan and have my payments count toward PSLF?

No, Parent PLUS loans are specifically mentioned as not being eligible for the PSLF waiver. Even if they are consolidated.

However, Parent PLUS loans are allowed to count toward the PSLF program going forward. You just won't get the benefit of adding prior payments via the waiver rules.

+ If I won't have 10 years (120 total) of student loan payments before the Oct 31st deadline, should I not apply?

No, you still can benefit potentially if you apply.

For example:

• A teacher has worked for 8 years at a public school.
• They have also been paying for student loans all that time.
• Let's say they had the wrong loan type or ineligible repayment plan under the original PSLF rules.
• They should still apply for PSLF before the October 31st deadline.
• Because of the waiver they will get credit for those 8 years of payment history. They now will be only 2 years away from their loans being forgiven.
• If they apply for PSLF after the waiver deadline, their 10-year clock will start the day they sign up and so they will still have 10 years of payments remaining until forgiveness instead of only the 2 years.

+ If I have all Direct federal loans, do I need to consolidate to get credit for payments that weren't originally eligible for PSLF?

No, payments will automatically be added if payments were made due to a non-eligible repayment plan. You just need to apply for PSLF (before the waiver deadline) if you haven't already and prove employment eligibility status during those payments being made.

The only people who need to consolidate are those with ineligible loans (like FFEL or Perkins).

+ I have made over 120 payments while working for an eligible public service employer. Will I get a refund for those payments over the 120 needed for forgiveness?

It depends. There are a few scenerios:

Yes - if you didn't need to consolidate any loans to get to the 120 payments.

Yes - if you consolidated and the extra payments were AFTER the consolidation.

No - if you consolidated and the extra payments were made PRIOR to the consolidation.

+ Is there a specific form I need to complete to get benefits under the PSLF waiver?

There is no "PSLF waiver form".

Think of the PSLF waiver as a deadline. Meaning, some rules are "waived" of the ongoing PSLF program if you apply before the deadline of October 31, 2022.

If you have not signed up for PSLF before, you just need to do so before the deadline to be under the "PSLF Waiver" rules. If you sign up after that date, you will not get the benefits of the adjusted rules. The orignial rules will apply.

There still may be advantages under the "normal" PSLF program that will continue past the deadline.

If you are wanting more information about the PSLF waiver I created a quick video course explaining it. It is FREE. You can check it out HERE.

+ What do I do if I have a question that isn't on this FAQ?

If you have a question that is not listed, you can ask it HERE. I will take a look at it.

+ How do I get notified when updates are announced with Biden's plan?

If you want to get notified when major changes are announced go HERE to get on an email list for updates.