Show Notes
PUBLIC SERVICE LOAN FORGIVENESS PROGRAM: HERE’S WHAT’S CHANGED
On October 6, 2021, the U.S. Department of Education announced major changes to the Public Service Loan Forgiveness (PSLF) program.
The new changes might help you if:
- You have federal student loans AND you work full-time for a school district, or institution of higher education AND you have Direct Loans OR You consolidate into the Direct Loan Program by Oct. 31, 2022
What public service workers need to do before October 31, 2022:
- Go to studentaid.gov/pslf, login with your Federal Student Aid ID (or create one if you do not have one) and make sure your contact information is up to date so the U.S. Department of Education can communicate directly with you.
- If you have a Direct Loan, have made 120 payments, and have applied for PSLF, you should receive automatic forgiveness soon.
- If you have a Direct Loan, have made 120 payments, and have NOT applied for PSLF, you need to apply for PSLF right away.
- If you have a FFEL or Perkins loan, you need to consolidate into a Direct Loan, then apply for PSLF. Previous Rules Temporary Changes
- PREVIOUS RULE: Borrowers who have Federal Family Education Loans (FFEL) or Perkins loans were ineligible for forgiveness
- TEMPORARY CHANGE: FFEL and Perkins loans payments are now eligible and count towards the required 120 payments
- PREVIOUS RULE: Payments in non-income driven repayment plans did not count towards the required 120 payments
- TEMPORARY CHANGE: Previous payments outside of income-driven repayment now count towards the required 120 payments
- PREVIOUS RULE: Previous late payments were not credited toward the required 120 payments
- TEMPORARY CHANGE: Previous late payments and partial payments now count towards the required 120 payments
- PREVIOUS RULE: Borrowers who consolidated their federal student loans to qualify for PSLF would lose all previous payment credits toward the 120 qualifying payments
- TEMPORARY CHANGE: Payments made prior to consolidation will now be eligible towards the required 120 payments
Why did the PSLF program change?
PSLF was created in 2007 to forgive the federal student debt of public employees, including teachers, faculty, and education support professionals, who provide 10 years of service and make 120 monthly payments on their student loans.
However, when the first borrowers became eligible for forgiveness, the Trump Administration prioritized profits for big banks over keeping the promise of PSLF. They denied over 90 percent of applications and kept public service workers paying interest on debts that should have been canceled.
Loan forgiveness was denied because the program had too many technicalities and many loan servicers misled borrowers about the rules. The Biden Administration’s overhaul fixes some of the technicalities and will mean debt forgiveness right away for tens of thousands of public service workers and eventual forgiveness for many more. Eventually, hundreds of thousands of educators could become eligible for loan forgiveness over the next year.
10 years of public service equals no student debt. That is the promise. And we will not stop until that promise is kept to everyone.
The changes to PSLF will exist only until October 31, 2022.
For more information, go to studentaid.gov/announcements-events/pslf-limited-waiver
Need Help?
- You can apply for PSLF forgiveness at studentaid.gov/pslf
- And every NEA member can get free help applying for PSLF (and with any questions about student debt) by going to neamb.com/Savi
- If you are not a member of NEA, you can join by going to nea.org/join
- ATTEND A ZOOM SESSION TO LEARN MORE
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Featured Education Matters guest:
- Heather Tinsley, former Pickerington Education Association President
- Heather Tinsley moved into a new role as assistant principal at Pickerington High School Central in the 2021-2022 school year. Before that, she was a special education teacher at Pickerington High School North. She also served as president of her local association.
Connect with us:
About us:
- The Ohio Education Association represents about 120,000 teachers, faculty members and support professionals who work in Ohio’s schools, colleges, and universities to help improve public education and the lives of Ohio’s children. OEA members provide professional services to benefit students, schools, and the public in virtually every position needed to run Ohio’s schools.
- Education Matters host Katie Olmsted serves as Media Relations Consultant for the Ohio Education Association. She joined OEA in May, 2020, after a ten-year career as a television reporter, anchor, and producer. Katie comes from a family of educators and is passionate about telling educators' stories and advocating for Ohio's students. She lives in Central Ohio with her husband and two young children.
This episode was recorded in December, 2021.
What is Public Education Matters?
Ohio's public schools serve 1.6 million children - 90 percent of students in the state! What happens in the classroom has impacts far beyond the walls of the K-12 school building or higher ed lecture hall. So, on behalf of the 120,000 members of the Ohio Education Association, we're taking a deeper dive into some of the many education issues facing our students, educators, and communities. Originally launched in 2021 as Education Matters, Public Education Matters is your source for insightful conversations with the people who shape the education landscape in Ohio. Have a topic you'd like to hear about on Public Education Matters? Email us at educationmatters@ohea.org