In addition to the mass debt forgiveness, borrowers may be able to take advantage of two other forgiveness opportunities implemented by the Biden administration during the student loan payment pause.
For a limited time, people who’ve worked full-time for the government or a nonprofit organization anytime after Oct. 1, 2007, can get additional qualifying credit towards PSLF for payments that wouldn’t usually be counted for the program. As of August, 175 thousand borrowers have received $9.6 billion in forgiveness under the Limited PSLF Waiver. The deadline to apply for the temporary waiver is Oct. 31, 2022.
Parent PLUS Loans and private student loans aren’t eligible for the PSLF Waiver.
The federal government writes off student loan debt after borrowers make 20+ years of monthly payments under one of its income-driven repayment plans. A recent study discovered that many borrowers didn’t qualify for that program because their loan servicers steered them into forbearances instead of an income-based repayment plan.
To rectify that, the Education Department plans to use a one-time waiver and account adjustment to give borrowers retroactive credit towards 20+ year repayment forgiveness.
Many people will see the updated payment count under the IDR Waiver applied to their account on the Federal Student Aid website, studentaid.gov, before the end of the year. But others who have older commercially-held Federal Family Education Loans must consolidate into a Direct Consolidation Loan before they’re eligible for this opportunity.