According to NPR and their Department of Education source, PSLF will have a few changes coming up next week:
- Did you make payments on disqualified loans like FFEL loans? You can count it, for a limited time, if you apply for PSLF before Oct. 31, 2022.
- Did you make payments on the wrong payment plan? Regardless of whether the payment was made on time, for a limited time, you’ll be able to count it. Again, you would need to apply for PSLF before Oct. 31, 2022.
- Did you consolidate older loans into Direct Loans and previously certified your years of public service? You will get credit for payments made before consolidation.
- Did you fail to certify those early FFEL payments? You can certify retroactively and receive credit for those early FFEL payments.
- Are you a military service member? You’ll be allowed to count toward PSLF all months spent on active duty, even if their loan payments were paused.
Long-term PSLF changes will include:
- Simplifying qualifying payments rules.
- Giving borrowers credit even if payments are late or made in installments.
- Giving borrowers credit for PSLF even if, under certain circumstances, their payments have been paused, such as for active-duty service members and borrowers facing economic hardships.
- Broadening the definition of public service.
We’ll keep you updated! The official news should come out next week.