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New Fix for Public Service Loans

May 24, 2018
 
 

The Department of Education on Wednesday announced the process by which borrowers who had made ineligible payments for the Public Service Loan Forgiveness program could be reconsidered for the benefit. 

Created by Congress in 2007, the PSLF program promises student loan borrowers working for nonprofit or public sector employers loan forgiveness on their remaining debt after 10 years of qualifying payments. But Massachusetts Sen. Elizabeth Warren and other Democratic officials have said failures by student loan servicers have led many borrowers expecting the benefit to make payments on non-qualifying plans through no fault of their own. Congress included $350 million for an eligibility fix in the omnibus spending bill passed in March, a priority pushed by Warren.

Details about the new temporary program are available on the Federal Student Aid website. Borrowers may qualify if they have been denied for Public Service Loan Forgiveness because some or all monthly payments were not made under a qualifying payment plan, if they worked for at least 10 years for a qualifying employer, and if they have made 120 payments on their federal student loans. 

 

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