The US Department of Education’s Public Service Loan Forgiveness program just became more accessible to those who qualify.
The original program, which was created in 2007, relieved the debt of those who worked full-time for a nonprofit or the government. Until now, the criteria for participants of the program included having a Direct Loan and enrolling in an income-driven repayment plan. Additionally, borrowers had to make 120 payments on their loans.
Now, it no longer matters what kind of federal loan a borrower has or what type of payment plan they are enrolled in. The loan payments still stand.
Eligibility for the Pubic Service Loan Forgiveness program was extended to October 31, 2022. According to a CNN report, those who did not previously qualify for the program can now apply. Over 500,000 could see their debt wiped away. In the past, more than 80% of borrowers who applied for the program did not meet the original criteria.
Where can you sign up?
If you work in public service, and already consolidate your loans into a Direct Loan, call your loan service provider. Make sure that you do qualify and that there aren’t extra steps you should take.
If you have a non-qualifying loan, then you must consolidate your debt into a Direct Loan and submit a form for the program.
