The New Student Loan Forgiveness Rule simplifies the process - who qualifies?

President Joe Biden

The New Student Loan Forgiveness Rule simplifies the process - who qualifies?

The U.S. Department of Education has updated the student loan forgiveness process for certain borrowers who work in the public service, including teachers, police officers, and social workers. The change, pushed through by the Biden administration, could make it easier for public service workers to request relief and reduce the chances that the request will be denied, Forbes reported.

Borrowers in nonprofit or government jobs can qualify for Public Service Loan Forgiveness (PSLF). Forbes added that this program provides full federal student loan forgiveness within ten years or after 120 "eligible" monthly payments. However, borrowers must be employed full-time with a qualified public service organization or part-time for several eligible organizations, working at least 30 hours per week.

According to Forbes, the Biden administration recently expanded the range of people who can qualify for student loan forgiveness through the PSLF, relaxing some rules and changing what counts as a qualifying payment. That forgiveness expired last fall, but the Education Department is still processing nearly half a million borrowers approved for student loan forgiveness through early February.

The Department of Education is also rolling out the IDR Calculation Amendment, which extends PSLF Limited Waiver benefits through the end of this year. This will allow many borrowers to obtain retroactive credit toward student loan forgiveness under the PSLF.

In addition to other eligibility criteria, the Department of Education said borrowers must complete and submit an Application and Certificate of PSLF and Temporary Extended PSLF (TEPSLF). The information you provide on the form will allow the agency to tell you if you are making eligible payments and are on the right track. If you still need to submit this form periodically, you must provide employment certificates for each employer you worked for while making eligible monthly payments.

For any additional questions or information, the Department of Education has a PSLF help tool for searching for a qualified employer, learning more about eligibility for a PSLF or TEPSLF, and creating a PSLF form.