Deadline looms for federal program that could forgive certain student loans
Forgiveness applies to those who have worked 10 years or more in the public or non-profit sector
InvestigateTV - The Biden Administration temporarily expanded the Public Service Loan Forgiveness (PSLF) program during the pandemic but the deadline to apply is fast approaching.
The PSLF, which was enacted by Congress in 2007, provides student loan forgiveness to borrowers who commit to working in public service careers in nonprofit or government jobs for 10 years or longer.
The program had several requirements and did not approve many borrowers. It was plagued with problems over the years, because of complex rules and poor oversight.
Now for a limited time, borrowers may receive credit for past periods of repayment that otherwise would not qualify for PSLF. The deadline to fill out the waiver is set to expire on Oct. 31,2022.
Cherry Dale, a financial coach with the Virginia Credit Union, said it’s worth it to fill out the waiver if you were denied in the past or think you may qualify now.
“In the past the PSLF loans would not qualify for student loan forgiveness. Any payments toward those loans would not qualify,” Dale said. “Through the new program now, if you had old loans and you were paying those, those qualify.”
According to the Department of Education this temporary expansion of the student loan forgiveness program for people working in public service jobs has already resulted in more than $8 billion in student loan cancellations for thousands of borrowers.
StudentAid.gov has all the information you need to see if you qualify for PSLF and instructions on how to apply.
Copyright 2022 Gray Media Group, Inc. All rights reserved.
