SPOKANE, Wash. — With the application open for student loan relief there are some specialized programs borrowers can take advantage of.
One of those, the Limited Public Service Loan Forgiveness waiver, expands debt relief for people who worked for qualified public employers including government organizations, non-profits, and AmeriCorps and Peace Corps volunteers.
Lynne emailed asking if people needed to be currently employed with a qualifying employer to get the waiver.
THE QUESTION
Can you get the Limited Public Service Loan Forgiveness waiver even if you are not currently working for a qualifying employer?
THE SOURCES
THE ANSWER
Yes, you can get the Limited Public Service Loan Forgiveness waiver, even if "you are not employed or not employed by a qualifying employer at the time of application and forgiveness."
WHAT WE FOUND
MOHELA, aka the Missouri Higher Education Loan Authority, reports that on October 6, 2021, the U.S. Department of Education announced temporary rule changes. It allows borrowers to receive credit for past payments that normally wouldn’t qualify for loan forgiveness.
This is called the Limited Public Service Loan Forgiveness waiver.
Under normal program rules, borrowers must be working at a qualified employer to receive forgiveness.
We reached out to the U.S. Department of Education about the waiver and they confirmed that the requirement is temporarily waived until Oct. 31, 2022, along with several other requirements, including:
- Receive credit for periods of repayment on Direct, FFEL, or Perkins Loans
- Periods of repayment under any plan count
- Periods of repayment on loans before consolidation count, even if on the wrong repayment plan
- Periods of repayment where payments were late or for less than the amount due also count
- Periods of repayment on loans before consolidation count, even if paid late or for less than the amount due
- Can get forgiveness even if not employed or not employed by a qualifying employer at the time of application and forgiveness
- If you got Teacher Loan Forgiveness, the period of service that led to your eligibility can count toward PSLF if you certify PSLF employment for that period
Applications must be submitted by October 31, 2022. Click here for more information on qualifications and the steps to apply.