Student loan forgiveness continues to dominate the news in 2022. The Biden administration has, so far, declined to implement widespread cancellation of student debt. Instead, the administration has opted for “targeted” student loan forgiveness, by improving upon and expanding several existing programs.
Here’s where things stand with current student loan forgiveness programs, and how to start the process of applying for relief.
The Public Service Loan Forgiveness (PSLF) program provides federal student loan forgiveness for borrowers who have devoted their careers to working for nonprofit or public organizations. Under the original rules of the program, PSLF had strict eligibility criteria, limiting relief to borrowers with Direct federal student loans in repayment under income-driven repayment plans.
announced in October, the Biden administration is relaxing key program requirements and broadening the types of loans and payments that qualify. For a limited time, payments made on FFEL-program federal loans and federal Perkins loans can count towards PSLF. And payments made under any repayment plan, including payments made prior to Direct loan consolidation, can qualify as well. Borrowers may need to take action before October 31, 2022 by consolidating non-Direct federal student loans into a Direct consolidation loan, and certifying past and present public service employment. Learn more about the Limited PSLF Waiver program
