Thu Oct 27 2022 10:40 PM
New Yorkers working in government or nonprofit organizations are eligible for loan forgiveness for direct and non-direct federal loans
√ The deadline for eligible borrowers to consolidate their loans and apply for the PSLF program is October 31, 2022
New York Attorney General Letitia James reminded officials to apply for the Public Service Loan Limited Waiver (PSLF) program before the Oct. 31 deadline. The PSLF program provides forgiveness of any federal student loan debt remaining after a borrower has made 120 qualifying payments while working full-time for a government or qualifying nonprofit organization.
“Public servants have spent their careers working for the residents of New York and helping to build a stronger, fairer state,” James said. “The PSLF program is another tool that helps solve the student debt crisis and allows public servants to be recognized for their hard work and dedication. I encourage eligible public servants to take advantage of the program and apply for debt forgiveness before the next deadline.
The limited waiver PSLF program expands access to loan forgiveness. The program counts payments on multiple federal loans and past payments, including missed, partial or late payments, as eligible repayments toward the 120-payment threshold for forgiveness. Previously, only payments on federal direct loans counted and only people with those loans were eligible. Now New Yorkers can consolidate their other federal loans — such as Federal Family Education Loans (FFEL) and Perkins Loans — into direct loans, and have their past payments count and become eligible. .
New Yorkers can determine if they work for an eligible employer online at the Federal Student Aid website. Eligible borrowers can apply online now to consolidate their loans into Federal Direct Loans and have their debt canceled before the Oct. 31 deadline.
Who is eligible for the PSLF program with limited derogation?
To qualify for loan forgiveness under the PSLF Limited Forgiveness Program, borrowers must meet these two conditions: have direct loans, from when they originally borrowed or through consolidation, and submit a PSLF form to certify eligible employment. Specifically:
• If the borrowers all have direct loans and have submitted PSLF certification: No action is required and the Ministry of Education will review the submission.
• If borrowers have both direct loans and non-direct loans (FFEL, Perkins or others) and have submitted PSLF certification: they must consolidate the non-direct loans into a direct consolidation loan to have prior repayment periods on these non-direct loans count towards the threshold of 120 payments for forgiveness. Borrowers can consolidate their loans on the Federal Student Aid website.
• If borrowers only have non-direct loans (FFEL, Perkins or others): they may be eligible for PSLF if they work for an eligible employer and consolidate the loans into a direct consolidation loan. Borrowers can use the PSLF assistance tool to determine if their employer is an eligible employer. If borrowers work for an eligible employer, they can consolidate their loans online. Once the loans have been consolidated, borrowers can use the PSLF support tool to create a form, which should be sent to the PSLF loan department, MOHELA.
• If borrowers all have direct loans but have not submitted PSLF certification: they may be eligible for PSLF if they work for an eligible employer. Borrowers can use the PSLF Assistance Tool, available on the Department of Education website at https://studentaid.gov/pslf/, to determine if their current employer is an eligible employer. If borrowers work for an eligible employer, they can use the PSLF support tool to generate a form, which must be submitted to MOHELA.
• If borrowers have both direct and non-direct loans (FFEL, Perkins or others) and have not submitted PSLF certification: they may be eligible for PSLF if they work for an eligible employer and consolidate their non-direct loans into a direct loan consolidation loan. Borrowers can use the PSLF assistance tool, at studentaid.gov/pslf, to determine if their employer is an eligible employer. If borrowers work for an eligible employer, they can consolidate their loans at studentaid.gov/consolidation. Once the loans are consolidated, borrowers can use the PSLF support tool to generate a form, which must be sent to MOHELA
How do I apply for the limited-exempt PSLF and get PSLF credit?
Borrowers who think they may qualify for the Limited Waiver PSLF program should see the Federal Student Aid website explaining the program in detail.