Education Department Announces Permanent Improvements to the Public Service Loan Forgiveness Program and One-time payment Count Adjustment to Bring Borrowers Closer to Forgiveness

U.S. Department of Education

October 25, 2022

Contact: Press Office, (202) 401-1576, press@ed.gov

Today, the U.S. Department of Education (Department) announced one-time executive actions that will bring most loans managed by the Department closer to forgiveness, including credit toward the Public Service Loan Forgiveness (PSLF) Program for borrowers who have qualifying employment. This action will coincide with the July 2023 implementation of permanent fixes to PSLF through regulation.

These actions will provide borrowers with many of the same benefits already going to those who have applied for PSLF under the temporary changes (known as the “Limited PSLF Waiver”), before its October 31, 2022 end date. Borrowers with Direct Loans or Department-managed Federal Family Education Loans (FFEL) will receive credit toward forgiveness on income-driven repayment (IDR) for all months spent in repayment, including payments prior to consolidation and regardless of whether they made partial or late payments or are on a repayment plan. Borrowers will also receive credit for specific periods in deferment and forbearance.

The Department strongly encourages borrowers to take the necessary steps to apply for the waiver by October 31, 2022.

“I’m incredibly proud that the Biden-Harris team’s temporary changes to Public Service Loan Forgiveness helped over 236,000 teachers, nurses, veterans, government employees and other public service workers secure more than $14 billion in debt relief,” said U.S. Secretary of Education Miguel Cardona. “Today, we’re encouraging public service workers to take advantage of the program’s temporary changes before the deadline on October 31.  At the same time, we’re taking bold steps that will automatically move more hardworking public service workers closer to forgiveness and making permanent changes to reduce the red tape that riddled the PSLF program. The Biden-Harris team is as committed as ever to upholding the promise of PSLF and ensuring borrowers who devote their careers to teaching our children, strengthening our communities, and serving our nation get the relief they’ve earned.”

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