Public Service Loan Forgiveness
The Public Service Loan Forgiveness (PSLF) Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. Qualifying employers include not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code, which includes Minnesota’s free legal services providers. Serving as a full-time AmeriCorps volunteer also counts as qualifying employment for the PSLF Program. This information is shared here to raise awareness about a program that benefits many members of our legal services community. PSLF only applies to Federal student loans, it does not provide forgiveness for private loans.
On Oct. 6, 2021, the U.S. Department of Education (ED) announced a temporary period during which borrowers may receive credit for payments that previously did not qualify for PSLF. Learn more about this limited PSLF waiver at the Student Aid.gov website. The temporary waiver period expires October 31, 2022. The temporary waiver expands the past periods of repayment that previously didn’t count for PSLF. It also allows different types of federal loans, including FFEL, Perkins, or other federal student loans to count, if they are consolidated into a Direct Consolidation Loan to qualify for PSLF.
These resources provide additional information about PSLF and the temporary waiver:
Federal Student Aid site to figure out what kind of loans you have (have to login with ID)
PSLF Coalition is hosting monthly webinars and has an FAQ about the temporary waiver
State Support hosted a webinar on January 11, 2022 about PSLF, LRAP and the waiver, you can view the recording
LRAP MN provides financial help for public interest lawyers, to learn more about their application process and eligibility, visit their website lrapmn.org.
In addition to the waiver, there are upcoming changes to PSLF loan servicers. Learn more from the September 2021 State Support blog post about Loan Servicer transfer/changes.
For other problems or issues with student loans, including private lenders or complaints about student loan servicers, the Minnesota Department of Commerce has information about the Student Loan Borrower Bill of Rights.