More than 60,000 nurses, teachers and other public service workers will receive $4.5 billion in student loan debt relief, the Biden-Harris Administration announced Thursday. The latest adjustment to the Public Service Loan Forgiveness program brings the total debt forgiven by the current administration to $175 billion for more than 4.8 million borrowers.
The forgiveness program, known as PSLF, was created to allow borrowers who work in public service to have their loans wiped out after making 120 qualifying monthly payments. But it had been riddled with problems since its launch in 2007, with less than 2% of applicants receiving approval before the program was overhauled in 2021. More than 1 million borrowers have now qualified for PSLF forgiveness, according to the announcement.
If you're a public servant or federal employee, look for an email from the Department of Education from President Joe Biden or your union encouraging you to apply for the PSLF program.
Who qualifies for the PSLF program?
The program is eligible for public servants, including teachers, nurses, social workers, first responders and service members.
If you're working full time for a government or not-for-profit organization, you may qualify for the PSLF program. If you do, you could have the remaining balance on your direct student loans forgiven after making the required 120 qualifying monthly payments.
The PSLF is now fully managed by the Department of Education after a transition earlier this year. You can sign up for the PSLF through StudentAid.gov.
If you're already a part of the program, you can use that link to track your forgiveness progress or access your account. However, the site notes that the department is still working to update PSLF payment counts. If your payment counts look wrong, contact your loan servicer or submit a complaint with Federal Student Aid.
What if I'm enrolled in the SAVE Plan?
The PSLF program is separate from the administration's Saving on a Valuable Education plan, which has faced numerous legal challenges and is currently on hold.
However, if you are enrolled in the SAVE Plan, your loans are currently in forbearance, which does not count for PSLF. If you're enrolled in SAVE and trying to get forgiveness through PSLF, you may want to consider contacting your loan servicer, which may be able to offer you one of the following options:
- Enroll in a different PSLF-eligible repayment plan to complete the required payments.
- Enroll in a program that lets you "buy back" months of PSLF credit for time spent in forbearance because of the court's injunction. The program became available this fall.
More incentives to apply for the PSLF program
The Biden administration also announced that a number of organizations are offering incentives for their public servant members to apply for the PSLF program.
These organizations include the National Education Association, American Federation of State, County and Municipal Employees, and the American Federation of Teachers. You can see what each organization is offering in the Department of Education's press release.
More on student loans:
- Student Loan Forgiveness Legal Troubles Keep Payments on Hold for Millions of SAVE Borrowers
- Student Loan Forgiveness on Hold Again. Experts Explain What's Next for Debt Relief
- 5 Ways to Pay Off Your Student Loans Even Faster