Untangling Student Loan Forgiveness: Who Qualifies For Three Complicated Programs For Public Service Workers

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A popular federal student loan forgiveness program for borrowers who devote their careers to public service has undergone multiple changes over the last few years, including a major recent change implemented by the Biden administration. Here's a breakdown:

Because of PSLF’s complicated eligibility criteria, and due to alleged mismanagement of the program by the Department of Education and its contracted loan servicers, the program suffered from extraordinarily high denial rates of 98% or more.To address some of the PSLF program’s shortcomings, Congress enacted the Temporary Expanded Public Service Loan Forgiveness program in 2018.

Importantly, TEPSLF made no changes to loan eligibility; only Direct loans qualify, not FFEL loans or Perkins loans. So borrowers who had the “right” type of repayment plan but the “wrong” kind of federal student loan were out of luck. TEPSLF also did not change the employment requirements of the PSLF program.

Given the quirks and oddities of the program, denial rates remained similarly high for loan forgiveness applications under TEPSLF. According to aLimited PSLF Waiver: The Latest Fix, But Actually Temporarysweeping new initiative called the Limited PSLF Waiver program

 

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