08/02/2022 in Announcements

Nonprofit and public service federal loan forgiveness

For a limited time, people employed in nonprofits and public service may receive credit for past periods of repayment on federal loans (e.g., student loans) that would not otherwise qualify under the Public Service Loan Forgiveness Program (PSLF). The PSLF Program forgives the remaining balance on a borrower’s federal Direct Loans after 120 qualifying monthly payments (10 years) for loans in which the borrower began repaying on or after October 1, 2007 under a qualifying repayment plan while working full-time for a qualifying employer.

Under the new temporary rules, any prior period of repayment will count as a qualifying payment, regardless of whether or not the borrower made a payment, made that payment on time, for the full amount due, or on a qualifying repayment plan. Certain forbearance periods also count under the temporary rules. This change applies to borrowers with federal Direct Loans, those who have already consolidated into the Direct Loan Program, and those who consolidate into the Direct Loan Program by October 31, 2022.

We encourage nonprofit and public service employers to share this information broadly with their employees. Even borrowers who have been denied loan forgiveness in the past or were told they did not qualify may be eligible to apply under the new PSLF waiver. This waiver is due to expire October 31, 2022. More information can be found at https://studentaid.gov/pslf/. Additionally, College Now Greater Cleveland can be a resource for those who need assistance at info@collegenowgc.org or 216-241-5587.