President Biden unveiled the Limited PSLF Waiver in 2021 to address these longstanding issues. Under this time-limited opportunity, the Education Department temporarily relaxed the original PSLF rules and expanded what can be credited toward the 120 qualifying payments needed to receive federal student loan forgiveness. The Limited PSLF Waiver ended last fall, but the Education Department is still processing a backlog of applications.
“Since Day One, the Biden-Harris Administration has worked relentlessly to fix a broken student loan system, including by making sure we fulfill the promise of Public Service Loan Forgiveness for those who have spent a decade or more serving our communities and our country,” said U.S. Secretary of Education Miguel Cardona in aon Monday.
Income-Driven Repayment programs, or IDR, can result in student loan forgiveness after 20 or 25 years, depending on the plan, regardless of the borrower’s employment. But the periods credited toward IDR student loan forgiveness under the IDR Account Adjustment cancount toward PSLF for borrowers who were working in qualifying public service employment. This includes many past periods of repayment, as well as certain periods of deferment and forbearance.
“All periods credited toward IDR will also be credited toward PSLF for eligible loans and periods where the borrower certifies public service employment,” says the Education Department inThe Biden administration is just starting to roll out the IDR Account Adjustment after several delays. Borrowers will continue to receive student loan forgiveness under both IDR and PSLF through this summer, but the adjustment is not expected to be fully implemented until sometime in 2024.
Meanwhile, borrowers who have non-Direct loans such as FFEL loans or Perkins loans should consider Direct loan consolidation before the end of 2023. “Borrowers who have commercially or federally held FFEL loans and who consolidate those loans into Direct Consolidation Loans before the end of the year will also get PSLF credit under the account adjustment,” says the department.
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