The Education Department has resumed processing applications for the Public Service Loan Forgiveness program after a pause, prioritizing borrowers who met program requirements during the hiatus, while also planning broader debt-relief efforts that face uncertainty amidst potential legal challenges and upcoming elections.
Education Department Restarts PSLF Program with Enhanced Application Processing and Borrower Support
According to Business Insider, the Education Department has restarted the Public Service Loan Forgiveness (PSLF) program, which helps government and nonprofit workers get rid of student debt after making payments for 10 years. They paused processing applications in May to move borrowers away from MOHELA, the previous sole servicer of Public Service Loan Forgiveness. Now, multiple federal servicers are handling PSLF under the Education Department’s oversight through studentaid.gov.
Federal Student Aid is focusing on forgiving loans first for borrowers who met Public Service Loan Forgiveness requirements during the pause. They are updating payment counts to include payments made while processing was on hold. Borrowers can check their application status and track progress using the student-aid dashboard. Notifications will come from both the Education Department and the servicer once forgiveness is approved and completed.
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1.5 Million Borrowers Rejoice: Public Service Loan Forgiveness Program Resumes – Simplifying Student Debt Relief (PHOTO: National Association of Counties)
Public Service Loan Forgiveness Process Amid Uncertain Future for Broader Debt Relief Plans
These changes are meant to make it easier for students to handle their loans and qualify for forgiveness. But broader plans for debt relief, which could help more than 30 million borrowers, are uncertain due to upcoming elections and potential legal issues. This highlights the ongoing struggle to lighten the load of student debt for countless Americans.
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