Monday’s student loan deadline could help some borrowers save thousands

Much attention has been paid to President Biden’s student loan forgiveness plan, but the deadline is fast approaching for another program that could be worth a lot more money for some student borrowers. A waiver, which relaxed the rules of the federal Public Service Loan Forgiveness Program – or PSLF – expires Monday, October 31. The waiver could help erase tens of thousands of dollars in student loan debt for teachers, police officers, paramedics, or anyone who has worked for any level of government or certain nonprofits. Experts say that even if you were told you weren’t eligible for the PSLF, you should check before Monday’s deadline to see if that has changed under the new rules. I didn’t pay attention to it because I was told years ago that I didn’t qualify,” said Betsy Mayotte, president and founder of the Institute of Student Loan Advisors or TISLA, an organization in Massachusetts-based nonprofit that provides free, unbiased student loan advice. . “The biggest so far had almost half a million dollars handed over.” Borrowers had to have a direct federal loan and make payments on an income-based repayment plan while working for an eligible employer. Each of these requirements had to be completed monthly for 10 years to earn credit for the program. But the waiver brought several important changes. “Under this waiver, any payment plan counts, any payment counts,” Mayotte said. “You might be late. You might be short on payment, and they’re also counting payments on other federal loans that normally don’t count.” That means payments on older federal loans like Perkins Loans and Federal Family Education Loans — or FFEL — now count. Another change: You don’t need to work for the government or a nonprofit to get a pardon, which means people who have retired, changed jobs, or perhaps stopped working for stay home with children should check to see if they are eligible. Click here to learn more about the program. “There is something called the PSLF helper tool. As long as you generate at least one form on the helper tool by the 31st that is finally submitted and approved, you are done under the waiver,” Mayotte said. the waiver expanded the types of eligible loans and payments, the key to the public service rebate remains 10 years to make a certain type of payment while working for the government or a non-profit organization.

Much attention has been paid to President Biden’s student loan forgiveness plan, but the deadline is fast approaching for another program that could be worth a lot more money for some student borrowers.

A waiver, which relaxed the rules of the federal Public Service Loan Forgiveness Program – or PSLF – expires Monday, October 31. The waiver could help erase tens of thousands of dollars in student loan debt for teachers, police officers, paramedics or anyone who worked for any level of government or certain non-profit organizations.

Experts say that even if you were told you weren’t eligible for the PSLF, you should check before Monday’s deadline to see if that has changed under the new rules.

“These are the people I see the most [who say] I didn’t pay attention to it because I was told years ago that I didn’t qualify,” said Betsy Mayotte, president and founder of the Institute of Student Loan Counselors or TISLA, a Massachusetts-based nonprofit that provides free, unbiased student loan advice. “The biggest so far had almost half a million dollars forgiven.”

Previously, the forgiveness of civil service loans had very strict rules. Borrowers had to have a direct federal loan and make payments on an income-based repayment plan while working for an eligible employer. Each of these requirements had to be completed monthly for 10 years to earn credit for the program.

But the waiver brought several important changes.

“Under this waiver, any payment plan counts, any payment counts,” Mayotte said. “You might be late. You might be short on payment, and they’re also counting payments on other federal loans that normally don’t count.”

That means payments on old federal loans like Perkins loans and Federal Family Education Loans — or FFEL — now count. Another change: You don’t need to work for the government or a nonprofit to get a pardon, which means people who have retired, changed jobs, or perhaps stopped working for staying home with children should check to see if they are eligible.

Click here to learn more about the program.

“There is something called the PSLF helper tool. As long as you generate at least one form on the helper tool by the 31st that is finally submitted and approved, you are done under the waiver,” Mayotte said.

While the waiver expanded the types of eligible loans and payments, the key to the public service rebate remains 10 years to make a certain type of payment while working for the government or a nonprofit organization.

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