![]() “This change ensures that members of the military will not need to focus on their student loans while serving our country.” The Biden administration “will allow months spent on active duty to count toward PSLF, even if the service member’s loans were on a deferment or forbearance rather than in active repayment,” which is typically a requirement for PSLF. The Department also announced sweeping PSLF changes for military service members. Special PSLF Changes For Those In The Military The Department will be conducting an audit over the next few months, and indicated it will automatically adjust qualifying PSLF payments for borrowers who were unfairly rejected due to these kinds of technicalities. “In some instances, borrowers missed out on credit toward PSLF because their payments were off by a penny or two or late by only a few days.” “Too many payments do not count toward PSLF due to technical requirements around borrowers’ choice of payment plan, timing, and amount of the payment,” wrote the Department. The Department will also be taking steps to reverse rejections of payments due to technicalities. PSLF Payments Rejected Due To Technicalities Will Be Reinstated ![]() covered” by the changes, wrote the Department in its announcement.Īs noted above, however, payments made on Parent PLUS loans prior to Direct loan consolidation will still not qualify for PSLF. “Payments prior to a Direct Loan consolidation are. Historically, consolidating loans effectively “restarts the clock” on a borrower’s repayment term, including for purposes of PSLF.Ĭonsolidating will still restart the clock on a borrower’s broader repayment term (which is something to be aware of), but now the Department will allow payments made prior to Direct loan consolidation to be counted towards PSLF, provided the borrower was working in qualifying employment when the payments were made. Payments Made Prior To Direct Loan Consolidation Can Count Towards PSLFĪnother major change the Department is implementing involves counting payments made prior to Direct loan consolidation towards PSLF. For example, payments made on private student loans, and payments made on Parent PLUS loans prior to Direct loan consolidation, will still not qualify. Some loans still will not qualify for PSLF, however. Borrowers would still need to consolidate these loans via the federal Direct consolidation loan program to obtain the benefit. Under the new changes, the Department will count payments made on non-Direct federal student loans, including FFEL loans and Perkins loans, towards PSLF, provided the borrower was working in qualifying PSLF employment when those payments were made. “Around 60 percent of borrowers who have certified employment for PSLF fall into this category.” “Counting prior payments on additional types of loans will be particularly important for borrowers who have or had loans from the Federal Family Education Loan (FFEL) Program,” wrote the Department of Education in its announcement. Payments made on other types of federal student loans, such as Perkins loans and older FFEL-program loans, have historically not counted as qualifying PSLF payments. ![]() The Department is also relaxing PSLF criteria that restricted eligibility to payments made on Direct federal student loans only. ![]() Payments Made on Non-Direct Federal Student Loans - including FFEL loans - Can Now Qualify for PSLF ![]()
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |