According to the U.S. Department of Education, the PSLF Waiver program could benefit more than half a million student loan borrowers once they consolidate into the Direct Loan Program.
Hope Credit has already assisted many of our clients in achieving forgiveness, or have as many previously ineligible months as possible counted and documented for future forgiveness.
We are proud to have been instrumental in helping many of our clients take advantage of this life-changing opportunity, many of whom were excited to share their stories.
How to Take Advantage of this Limited Time Offer
For the last month or so, the federal government and the Department of Education have been unclear as to what would be offered in terms of PSLF Forgiveness. Thankfully, The Department of Education has finally taken action. Using the COVID Emergency Relief powers as a legal justification for what would otherwise require congressional approval, Direct Loan borrowers are being given a new PSLF Waiver that allows them to have additional months counted towards PSLF based on two things:
Recently, a limited-time amendment was made to the PSLF Program. From October 6, 2021, through October 31, 2022, any payments you have made on loans that would not previously qualify now do. With more uncertainty on the horizon, we urge you to take advantage of this waiver while it is available.
What is the PSLF Waiver?
Under the limited PSLF waiver, your credit toward PSLF will include any repayments you have made to Federal Family Education Program loans (FFEL), Perkins loans, and most Direct loans. All payments you have made now qualify, even if you did not pay the total amount or pay it on time.
To qualify, you will need to consolidate your loans into the Direct Loan Program before October 31, 2022 if you have any loans that are not Direct loans.
Under the previous rules, you would qualify for PSLF forgiveness on the remaining balance of your loan if:
Who is Eligible to Use This Waiver?
The new PSLF Waiver has criteria that differ a bit from the previous iteration. As such, you should take a look at these updated criteria to make sure that you are eligible for the new PSLF waiver. If you are eligible, it may help you on the road to student loan forgiveness.
