Public Student Loan Forgiveness Waiver Options for Pre-2010 and Post-2010 Loans

If you have pre-2010 loans, you may be eligible for the Public Service Loan Forgiveness (PSLF) waiver, which can cancel up to $120,000 in debt.

The PSLF waiver applies to borrowers who were in a qualifying repayment plan and made 120 qualifying payments, but were previously denied forgiveness due to their loan type or payment history.

Borrowers with post-2010 loans may be eligible for the Temporary Expanded Public Service Loan Forgiveness (TEPSLF) waiver, which can also cancel up to $120,000 in debt.

To qualify for the TEPSLF waiver, borrowers must have made 120 qualifying payments and have a remaining balance on their loans after applying the PSLF waiver.

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If you're wondering who qualifies for the Public Service Loan Forgiveness (PSLF) waiver, the answer is quite broad. Borrowers with federal student loans who worked full-time for the government or a nonprofit anytime after September 2007 qualify, even if they've changed employers or left for the private sector.

To be eligible, you need not have worked in public service all those years. You can still qualify if you've made payments while working in qualifying employment. Borrowers eligible for the PSLF Waiver include full-time government and nonprofit employees, retired public service workers, borrowers who no longer work in a public service job, and borrowers with joint spousal consolidation loans.

Here's a breakdown of who's eligible:

On the other hand, borrowers who don't qualify for the PSLF Waiver include parents who borrowed PLUS Loans for their child's college education, public servants who only have private student loans, borrowers who stopped working in public service before October 1, 2007, volunteers at government and nonprofit organizations, and borrowers who work for a private company that provides services to the government or a nonprofit.

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If you have federal student loans from 2010 or before, you'll need to consolidate your loans into a Direct Consolidation Loan to take advantage of the PSLF Waiver benefits.

You can consolidate multiple loans with different payment counts and get credit for the new consolidation loan for the one with the most months of credit.

Borrowers with federally-owned FFEL loans do not have to consolidate to get these benefits, but borrowers with commercially held FFEL debt will need to consolidate by June 30, 2024, to take advantage of the IDR Adjustment.

To get started, submit the PSLF Employment Certification Form on StudentAid.gov, also called the ECF, and use the Federal Student Aid's (FSA) PSLF Help Tool to do this.

You can also consider consolidating your loans to get credit for past periods of repayment that would otherwise not qualify for PSLF. This is especially true if you have Parent PLUS loans, which can be consolidated into a Direct Consolidation Loan to get around the rules excluding Parent PLUS from forgiveness.

Here are the key action steps:

Don't forget to apply for the PSLF Waiver by October 31, 2022, to receive credit for prior payments made on federal student loans that would otherwise not qualify for PSLF.

If you have loans from before 2010, you're likely dealing with FFEL loans, which previously didn't qualify for Public Service Loan Forgiveness (PSLF).

Most of these loans will need to be consolidated into a Direct Consolidation Loan. This is a crucial step for FFEL loans, including both public and private sector employees.

Borrowers with Parent PLUS loans can do a double consolidation to get around the rules excluding Parent PLUS from forgiveness. This is a clever workaround, but it's essential to understand the rules.

You must consolidate your loans by June 30, 2024, to take advantage of the IDR Adjustment benefits. This deadline is looming, so don't delay.

Borrowers with federally-owned FFEL loans do not need to consolidate to get these benefits. This is a significant advantage for those with these types of loans.

To move forward, submit the PSLF Employment Certification Form on StudentAid.gov, also called the ECF. This form is a crucial step in the process.

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You can use the Federal Student Aid's (FSA) PSLF Help Tool to make submitting the ECF form a breeze. This tool is a valuable resource for those navigating the process.

If you have Direct Loans from this period, certify ALL your years working at a nonprofit or government employer. This can help you pick up years of additional credit toward forgiveness.

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If you have federal student loans after 2010, you're likely only dealing with Direct Loans. This is because the FFEL program ended in 2010, so there's no need to consolidate, unless you want to consider consolidating your loans to get credit for past payments.

You might want to consider consolidating your loans if you've made payments on a previous loan, like if you worked as a teacher after undergrad for four years. If you consolidate your grad school loans with your undergrad loans, your new loan will get credit for those four years of payments.

To get the most out of the PSLF Waiver, you should apply by October 31, 2022, as the limited waiver opportunity is only available for a limited time. This means you need to submit a PSLF form and certify your employment to qualify for forgiveness.

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To apply for the PSLF Waiver, you'll need to submit a PSLF Form on StudentAid.gov and then fax the signed employer's certification to MOHELA at 866-222-7060 or upload it using the MOHELA website.

If you had FFEL or Perkins Loans, you'll also need to use that site to submit a consolidation application before the deadline.

You can check your PSLF Waiver status by contacting MOHELA, or get updates and answers to your questions through mohela.com if you create an online account.

Processing times for the PSLF Waiver have been slower than expected, with many borrowers waiting six months or more to find out their payment count.

The Education Department initially estimated it would take about 90 days to process PSLF Waiver applications, but the high volume of applications has caused delays.

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Over 100,000 borrowers have already received Public Service Loan Forgiveness (PSLF) due to the waiver, but millions more could benefit.

The PSLF Waiver applies to borrowers who have made payments while employed full-time for 10 years, with at least half of public sector workers estimated to have met these eligibility requirements.

Many borrowers will likely only receive a couple of years of extra credit toward their 120 months of qualifying payments, as they may have started out on the wrong repayment plan or made a loan consolidation mistake.

The PSLF Waiver has the potential to benefit millions of borrowers with previously ineligible loans, including those with FFEL loans, which have been around for at least 10 years and could have qualified for PSLF under this executive action.

Approximately 25% of the workforce, or around 10.6 million borrowers, have FFEL loans, which could result in complete forgiveness for millions of borrowers under the PSLF Waiver.

Here's a rough estimate of the potential impact on FFEL loans:

Note: These estimates are based on the assumption that 25% of FFEL borrowers work in public service and have been employed full-time for 10 years.

The Department of Education has released forgiveness totals for each month under the PSLF waiver, showing a slowing rate of growth in approvals.

So far, the Department of Education has released forgiveness totals for each month under the PSLF waiver, and it's a promising start. Over 100,000 borrowers have already received Public Service Loan Forgiveness (PSLF) due to this waiver.

The number of borrowers getting PSLF is expected to be much higher, with millions of people potentially receiving benefits under this waiver. To qualify, borrowers need to be employed full-time for 10 years cumulatively and have made payments while employed for those 10 years.

The rate of growth in approvals is slowing, but it's still a significant development. As of now, we can see the official numbers and projected growth rates in the table below:

Keep in mind that these are just projections, and the actual numbers may vary. However, it's clear that the PSLF waiver is making a difference in the lives of many borrowers.

Borrowers with Direct Loans who didn't certify credit toward forgiveness while on plans besides an IDR plan will have the most to gain from the PSLF Waiver.

FAR more borrowers qualify for PSLF with Direct Loans than have currently submitted an approved employer certification PSLF form.

The final benefit amount of the PSLF Waiver may ultimately depend on reaching a huge number of individuals in the next year.

Borrowers who consolidate their grad school loans with their undergrad loans can get credit for those four years they paid as a teacher, as long as the consolidation is done before the PSLF Waiver expires.

Direct Loans from 2010 and after will not need to be consolidated, but considering new guidance on consolidating Direct Loans during the waiver might be a good idea.

If you consolidate multiple loans with different payment counts, you can get credit for the new consolidation loan for the one with the most months of credit.

Borrowers with Direct Loans who benefit from the PSLF Waiver will probably just get a couple of years of extra credit toward their 120 months of qualifying payments.

Here's a rough estimate of how many Direct Loans will be forgiven from this PSLF order:

The Education Department initially estimated it would take about 90 days to process PSLF Waiver applications, but due to a high volume of applications, processing has ground to a near halt, with many borrowers waiting six months or more to find out their payment count.

You can check your PSLF Waiver status by contacting MOHELA or creating an online account at mohela.com.

The PSLF Waiver started on October 6, 2021, and ended on October 31, 2022.

As of May 2022, over 100,000 borrowers have received forgiveness on over $6 billion, with most consolidations happening within one or two months.

Many borrowers report seeing their payment counts updated anywhere between two and six months after taking the necessary steps.

The Education Department is in the process of transferring 16 million borrower accounts to a new student loan servicer, which may impact the processing time for PSLF Waiver applications.

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Private loans don't qualify for the PSLF Waiver, so if you have private student loans, you won't be able to take advantage of this program.

If you've refinanced federal student loans with a private lender, those loans also don't qualify for the PSLF Waiver.

However, privately-held federal student loans made through the Federal Family Education Loan Program are eligible for the PSLF Waiver if they were consolidated into a Direct Loan before November 1, 2022.

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Some borrowers will get a refund for extra PSLF payments made on Direct Loans, according to the Education Department. The refund is automatic for any payment made on Direct Loans over the 120 qualifying payments threshold for PSLF.

You can also get a refund for payments made during the payment pause. That refund opportunity is separate from the PSLF refund opportunity.

Borrowers with Direct Loans who didn't certify credit toward forgiveness while they were on plans besides an IDR plan will have the most to gain from the PSLF Waiver refund.

If you have FFEL Loans, you won't get a refund for excess payments made before consolidating. The same goes if you've already had your loans forgiven or paid them off: You aren't eligible for a refund of past payments, according to Federal Student Aid.

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The PSLF Waiver has brought billions of dollars of student debt relief to tens of thousands of Americans, many of whom were denied forgiveness for years due to having FFEL, Perkins, or another non-qualifying loan type.

Here's a breakdown of the types of loans that can benefit from the PSLF Waiver refund opportunity:

You can get a refund for payments made during the payment pause, but that's a separate opportunity from the PSLF refund.

Private loans don't qualify for the PSLF Waiver, regardless of the lender.

If you refinanced federal student loans with a private lender, they also don't qualify for the PSLF Waiver.

Privately-held federal student loans made through the Federal Family Education Loan Program are eligible for the PSLF Waiver if they were consolidated into a Direct Loan before November 1, 2022.

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Getting help navigating the public student loan forgiveness waiver is crucial to maximize benefits. Borrowers who experienced difficulty with PSLF during the late 2000s and early 2010s may benefit from the IDR Waiver.

Our team of professionals can help ensure you get the most out of the waiver rules. We have the highest reviews in the student loan industry, so you can trust us to have your best interests at heart.

Don't worry if you're not tech-savvy or need guidance on the application process – we're here to help.

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If you're feeling overwhelmed by the PSLF Waiver process, don't worry, you're not alone. Borrowers who experienced difficulty with PSLF during the late 2000s and early 2010s when information about PSLF was less widely available can benefit from the IDR Waiver.

The PSLF Waiver expired on October 31, 2022, but the IDR Waiver offers many of the same benefits. Our team of professionals can help make sure you get the max benefits under the waiver rules.

Following the action steps in this article carefully can knock years off your repayment or even get complete forgiveness. Consolidating multiple loans with different payment counts can get you credit for the new consolidation loan for the one with the most months of credit.

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If you have an FFEL loan, you must consolidate it into a Direct Consolidation Loan to take advantage of the IDR Adjustment benefits by June 30, 2024. Borrowers with federally-owned FFEL loans do not have to consolidate to get these benefits.

You can trust that we take our responsibility to save you money incredibly seriously. We have the highest reviews of any company operating in the student loan industry.

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Now that you've applied for the PSLF Waiver, you might be wondering what's next. MOHELA and the Education Department will continue processing applications until they get through the case backlog.

You can expect to have your loans forgiven before repayment begins in 2023, but some borrowers may still need to make payments. If you've made all 120 payments under the limited PSLF Waiver and continue paying after the forbearance has ended, the department will refund those extra payments.

Keep in mind that you won't owe taxes once your loans are paid off, but your credit score might temporarily drop a bit as your credit report is updated to show that the loans are closed.