Public Service Loan Forgiveness Deadline
President Biden’s recent announcement of student loan debt reduction and forgiveness has generated a lot of media interest. Many Americans who have student loans still outstanding are delighted that he’s making good on his campaign promise to address this issue.
In addition to the new program, there is also the Limited PSLF (Public Service Loan Forgiveness) Waiver program that is already in place. If you currently work or have worked, in public service you should find out if you qualify for the Biden administration’s Limited PSLF (Public Service Loan Forgiveness) Waiver program.
What is the Limited PSLF Waiver program?
The Limited Public Service Loan Forgiveness Waiver program is an expansion forgiveness program for people who work in public service jobs and have student loans. The Department of Education says that the program has already resulted in over $8 billion in approved student loan cancellations.
The obvious list of public service jobs includes teachers, nurses, veterans, and government workers. But if you work or worked for a non-profit, federal, state, Tribal, or local government since 2007 and have been paying your loan, you are eligible for this program of student debt forgiveness.
The Education Department is pushing hard to get people who qualify to sign up. Secretary of Education Miguel Cardona took to Twitter recently to encourage those who qualify to take advantage of the plan. He said “The #PSLF Waiver has simplified the process of getting loan forgiveness. But you have to be signed up by October. I encourage everyone – even if you have been denied before or used other benefits – to apply.”
The Education Department temporarily relaxed some strict rules to retroactively count prior loan periods. Until the end of October, some loans that previously were prevented from being included can now be claimed. Payments made under the “wrong” repayment plan are now back on the table, as is the “wrong” type of federal student loan.
According to a July 2021 study by MeasureOne, an academic data firm, almost 92 percent of student debt can be attributed to the U.S. Department of Education. The total outstanding federal student loan debt is s staggering $1.62 trillion. The Education Department and the government are encouraging borrowers to apply for the Limited PSLF Waiver program as soon as possible, as it is available for a short time and it ends soon. The October 31 expiration date is approaching fast.
The average monthly student loan payment is an estimated $460, and the average borrower takes 20 years to repay their student loan debt "If you believe you may qualify for this PSFL, you should act immediately," said Scott Ente, Senior Vice President, Investments, for David Lerner Associates. "Getting your public service student loans forgiven could make a huge difference to your future financial plans."
To qualify for the program, certain steps have to be done and those take time. PSLF employment certification forms must be filled out and filed. Borrowers need to consolidate their FFEL and Perkins loans through the Federal Direct consolidation program.
Getting your public service student loan forgiven can free up a significant amount of income that could be used to fund your future financial goals. Talk to a financial and investment advisor to help you plan how this student loan forgiveness plan could impact your future.
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