Public Service Loan Forgiveness
If you’re a college student or college graduate, chances are that you’ve thought about student loans. As higher education costs rise, student loan payments are not only a consideration in the search for a first job, but often influence financial decisions for many years after you’ve departed your alma mater.
If you work in the public sector or in the nonprofit world, you may have heard about the PSLF (Public Servant Loan Forgiveness) program. Since it was introduced, PSLF has struggled to accurately and fairly dispense benefits to America’s public servants because of the stringent application of its requirements:
Applicants must work full time at a qualifying organization
U.S. federal, state, local, or tribal government
Not-for-profit organization
Federal service (includes U.S. military service)
Applicants must have at least 120 on-time payments
Applicants must have a qualifying federal loan and repayment plan
Last October, the White House announced a temporary relaxation of certain rules in order to make this loan forgiveness program more accessible and remove some of the red tape that has stopped public servants from receiving assistance with their student loans.
This relaxation period ends on October 31st, 2022, so it is important to act now to see if you qualify - particularly if you did not qualify before. Under the new guidelines, Federal Family Education loans, which were initially not eligible for forgiveness, now qualify. In addition, the 120 payment requirement now counts partial payments and certain payment plans that were previously ineligible toward that magic number. Lastly, if you would have been eligible but made late payments, your eligibility will be restored.
Because of the COVID-19 crisis, many federal student loan payments have been temporarily suspended until December 31, 2022. As that date approaches and payments may resume, it would be especially beneficial to explore PSLF options so that your payments are decreased or eliminated when or before they start.
As members of the higher education community and nonprofit world, we would like to help facilitate relief from student loans for our students and network of host organizations and educators. You can see if you now qualify and find more resources at studentaid.gov,, and read more about the changes from last year in this article that features a helpful FAQ.
Shortly before the release of this blog, the Biden administration announced $20,000 in federal loan forgiveness for borrowers who were eligible for Pell Grants in college. Individuals making up to $125,000 and households making less than $250,000 will also be eligible for $10,000 of loan relief. Additionally, On August 24th, the Department of Education also proposed allowing additional types of payments to qualify for PSLF - including partial, late, and lump sum payments - and allowing certain deferments and forbearances - including those for AmeriCorps and Peace Corps service - to count toward PSLF.
As an organization, College for Social Innovation strongly supports these recent developments, which we believe will democratize access to nonprofit employment and provide critical support to students and graduates who seek to dedicate their careers to serving the public good.