Public Service Loan Forgiveness Changes Announced!
Time to Act Now!
Thanks to lobbying by KEA and NEA members across the country, changes to loan forgiveness programs may help you find relief.
Substantial changes have happened since last fall with Public Service Loan Forgiveness (PLSF). Thanks to more than 170,000 messages sent to the Biden Administration, changes were announced by the U.S. Department of Education that included a broad expansion of the types of payments that count toward loan forgiveness.
Forgiveness formerly required the right kind of payments in the right kind of repayment plan on the right kind of loans. Now, the program will accept more kinds of payments, including late payments; additional repayment plans; and more types of loans.
Under former Education Secretary Betsy DeVos, a champion of private voucher schemes aimed at providing tax credits to the wealthy at the expense of public-school tax dollars, loan forgiveness came to a screeching halt, with a 98 percent rejection rate for applications from 2017-2020.
It is estimated that as many as 550,000 public-service workers nationwide who have already registered in the system will now see their progress toward PLSF grow by an average of 23 monthly payments. Another 27,000 could receive$2.82 in loan forgiveness if they certify additional periods of employment.
NEW CHANGES CAN HELP:
IF YOU HAVE FEDERAL STUDENT LOANS AND WORK FULL-TIME FOR A SCHOOL DISTRICT OR INSTITUTION OF HIGHER EDUCATION
HAVE DIRECT LOANS OR YOU CONSOLIDATE INTO THE DIRECT LOAN PROGRAM BY OCTOBER 31, 2022.