Employees may be eligible for federal student loan forgiveness. The Public Service Loan Forgiveness (PSLF) Program forgives the remaining balance on Direct Student Loans for borrowers after they have made 120 qualifying monthly payments under a qualifying repayment plan while working for an employer who meets certain qualifications.
Now, for a limited time, borrowers may receive credit for past periods of repayment that would otherwise not qualify for PSLF.
Under the new temporary rules, any prior period of repayment will count as a qualifying payment, regardless of loan program, repayment plan, or whether the payment was made in full or on time. But you do continue to need qualifying employment.
This change will apply to borrowers with Direct Loans, those who have already consolidated into the Direct Loan Program, and those who consolidate into the Direct Loan Program by Oct. 31, 2022.
Visit Studentaid.gov to find out more information and to apply for PSLF.
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