Education Department Announces Permanent Improvements to the Public Service Loan Forgiveness Program

This week the Department of Education announced executive actions that will bring most loans managed by the Department closer to forgiveness, including the Public Service Loan Forgiveness (PSLF) Program. This action will coincide with the July 2023 implementation of permanent fixes to PSLF through regulation. A fact sheet on the permanent improvements to PSLF regulations can be found here.

These actions will provide borrowers with many of the same benefits already going to those who have applied for the PSLF Waiver before its October 31, 2022 deadline. Borrowers with Direct Loans or Department-managed Federal Family Education Loans (FFEL) will receive credit toward forgiveness on income-driven repayment (IDR) for all months spent in repayment, including payments prior to consolidation and regardless of whether they made partial or late payments or are on a repayment plan. Borrowers will also receive credit for specific periods in deferment and forbearance. The Department strongly encourages borrowers to take the necessary steps to apply for the waiver by October 31, 2022.