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Biden Administration Updates Process for Public Service Loan Forgiveness
The Biden administration has recently updated the application process for Public Service Loan Forgiveness (PSLF), a federal student loan forgiveness program designed for individuals working in nonprofit or government jobs. The program provides complete loan forgiveness after 120 “qualifying” monthly payments have been made. In the past, only payments made on Direct-program federal student loans under specific repayment plans were considered eligible.
Temporary Initiatives to Expand Eligibility
To expand eligibility for PSLF, the Biden administration has established initiatives such as the Limited PSLF Waiver, which relaxed some of the original eligibility rules and expanded what counted as a “qualifying payment” towards loan forgiveness. Although the waiver ended last fall, the Education Department is still processing a backlog of applications, with nearly half a million borrowers approved for student loan forgiveness through early February.
The IDR Account Adjustment, a new initiative, will allow borrowers to receive retroactive credit toward student loan forgiveness under PSLF, including for many past periods of repayment, deferment, and forbearance, if the borrower was working in qualifying employment.
Application Process for PSLF
One of the eligibility criteria for PSLF is for borrowers to complete and submit a PSLF Employment Certification form to request “credit” toward the 120 payments required for loan forgiveness. However, the certification form has caused problems for borrowers in the past, with forms being rejected for seemingly trivial technicalities, such as an unchecked box or a misspelled name. The Education Department has been particularly strict about signatures on the PSLF form, with a “wet” or hand-drawn digital signature required.
Update to PSLF Process Will Allow for Electronic Signatures
To streamline the application process further, the Education Department has included an electronic signature option for employers. Borrowers can now provide an email address for the individual certifying the PSLF form on behalf of their employer. The Education Department recommends notifying the employer of this process in advance and informing them to expect an email requesting a digital signature. Employers must then sign the PSLF form within 60 days.
Borrowers can retain the option to obtain a manual signature on the PSLF form if they prefer. However, this latest update may simplify the application process, reduce the chances of a form being rejected due to technical errors, and expedite the Education Department’s ability to process student loan forgiveness requests and count PSLF payments.
Final Thoughts
With the changes to the PSLF process, borrowers may find it easier to request relief and reduce the chances of an application getting rejected. Those who are committed to working in nonprofit or government jobs and have Direct-program federal student loans should consider exploring their eligible options for PSLF.
About the Author
Adam S. Minsky is a national authority on student loan law and policy. He established a unique law practice focused on assisting student loan borrowers and their families. Minsky has extensively advocated for student loan borrowers and is an experienced public speaker, consultant, and writer on student loan-related topics. Follow him on Twitter or LinkedIn or visit his website for more information.
