Legislators encourage DOE to extend public service loan forgiveness deadline

On Oct. 31, 2022, public service workers have a deadline for review by the U.S. Department of Education to possibly receive loan forgiveness.

However, data suggests that only 1.3 million public service loan forgiveness borrowers with eligible employment and positive loan balance have been reviewed by the department. The Student Borrower Protection Center identified that 9 million public service workers are eligible for loan forgiveness.

U.S. Senators Bob Menendez of New Jersey, Patty Murray of Washington and Chair of the Senate HELP Committee, Tim Kaine of Virginia, and Kirsten Gillibrand of New York led 110 colleagues in a letter to the department of education encouraging the Public Service Loan Forgiveness (PSLF) waiver deadline be extended to at least July 1, 2023, when, according to a press release, the rules to improve and expand federal student debt relief programs, including PSLF, are currently on track to take effect.

“The PSLF waiver announced by the Department last October was designed to ‘overhaul’ the PSLF program and ‘make it live up to its promise’ by allowing ‘all payments by student borrowers to count toward PSLF, regardless of loan program or payment plan,’” the lawmakers wrote to Secretary Cardona. “To date, the waiver has been overwhelmingly successful in reducing barriers for borrowers to receive PSLF relief — accounting for almost all (89%) of the borrowers who have received forgiveness through the PSLF program through June 30, 2022.”

But more public service workers either have not been made aware of the program or have not yet applied, including military members.

“For many borrowers, the department’s one-time review to fix forbearance and deferment failures, scheduled for later this year — potentially after October 31, 2022 — may be the first time that they learn that certain periods of deferment and forbearance could count toward both income-driven repayment (IDR) and PSLF programs,” added the lawmakers. “…For many public servants, losing access to the PSLF waiver before they are able to benefit from the IDR payment adjustment could prevent them from being able to pursue forgiveness under PSLF.”

The letter states that extension of the PSLF waiver will also allow more military service members and federal employees to make progress toward achieving loan forgiveness through the PSLF program. Data shows that military service members face troubling administrative hurdles in certifying their employment for the PSLF program.

“[W]e also ask that the department increase its outreach to public servants and borrowers to ensure that they are aware of the waiver and understand eligibility requirements, and correct any misinformation about the waiver being communicated by student loan servicers,” concluded the lawmakers.

The legislation is supported by 74 organizations, including The School Superintendents Association, American Council on Education, American Federation of Government Employees, American Federation of State, County & Municipal Employees (AFSCME), American Federation of Teachers (AFT), American Psychological Association (APA) and the National Association for the Advancement of Colored People (NAACP).