Learn About the Limited Public Service Loan Forgiveness (PSLF) Waiver

The Limited PSLF Waiver can help you get closer to loan forgiveness faster.

The Public Service Loan Forgiveness (PSLF) Program forgives the remaining balance on federal Direct Loans after borrowers have made 120 qualifying payments while working full-time for a qualifying employer. The U.S. Department of Education recently announced a temporary, but significant waiver to the PSLF Program’s rules. The waiver, called the “Limited PSLF Waiver,” allows borrowers to get credit towards loan forgiveness for past repayment periods that would not otherwise qualify for PSLF. This means borrowers can get closer to loan forgiveness faster. However, to qualify for the Limited PSLF Waiver and maximize its benefits, you may need to take certain actions by October 31, 2022These actions may include obtaining a Direct Consolidation Loan and/or filing employment certifications

What is Public Service Loan Forgiveness (PSLF)?

The PSLF Program was created by Congress in 2007. It was intended to provide debt relief to federal loan borrowers who work for at least ten years in public service. Under PSLF, borrowers can receive forgiveness of their remaining federal loan balance after making ten years (120 months) of qualifying payments while working full time for the government or certain types of non-profit employers. However, the rules for PSLF are complex. For payments to count towards forgiveness they must be made:

  • on a Direct Loan,
  • under an income-driven plan or the 10-year standard plan,
  • for the full amount due as shown on your bill,
  • not later than 15 days after your due date, and
  • while you are employed full-time by a qualifying employer.

Due to the complexity and poor administration of the PSLF Program, millions of public service workers have been unable to access loan forgiveness—often because they had the wrong loan type or made payments under a non-qualifying repayment plan.

What does the Limited PSLF Waiver do? 

While (1) qualifying employment is still required and (2) borrowers must either have or obtain Direct Loans through consolidation, the Limited PSLF Waiver temporarily eliminates most of the PSLF Program’s other rules. Through the waiver, some borrowers will receive loan forgiveness while others will get much closer to forgiveness. To summarize:

  • Non-qualifying payments will now count. Months in which you failed to make a payment, paid late, paid the wrong amount, paid under the wrong repayment plan, or paid on a loan that was later consolidated will count towards forgiveness under the waiver. 
  • Payments on non-qualifying loan types can now count. Months in which you made payments on loan types that do not traditionally qualify for PSLF (e.g., FFEL or Perkins Loans) can count towards forgiveness under the waiver. However, you must apply to consolidate those loans into the Direct Loan Program by October 31, 2022.
    • Although consolidating restarts the clock on loan forgiveness under traditional PSLF rules, payments made prior to consolidation will count towards forgiveness under the Limited PSLF Waiver.
  • If payments were paused on your Direct Loans due to the COVID-19 emergency, those months will also count towards loan forgiveness under the waiver.
  • Forbearance periods of 12 or more consecutive months, or 36 or more cumulative months will count towards forgiveness under the waiver. The U.S. Department of Education will begin making account adjustments to include these periods in fall 2022.
  • Months spent in certain types of deferment before 2013 (except in school deferment) will count towards forgiveness under the waiver. Additionally, periods of Economic Hardship Deferment that occurred in or after 2013 will count under the waiver. Credit for these deferment periods will be applied to your account in fall 2022.
  • Periods of deferment and forbearance for specific military service will count towards forgiveness under the waiver.
  • Even if you are retired or no longer working for a qualifying employer, you can receive forgiveness. If you have ten years of qualifying employment and payments  by October 31, 2022, you can receive forgiveness under the waivereven if you are retired or no longer working for a qualifying employer.

What Steps Do I Need to Take? 

Below are instructions and tips for ensuring that you maximize potential benefits under the Limited PSLF Waiver. Please note that you must act before October 31, 2022You can also learn more about the waiver and find answers to frequently asked questions on the U.S. Department of Education’s website.

Table of Contents

1. Confirm that you have qualifying full-time employment.

For your employment to count towards PSLF and the Limited PSLF Waiver, you need to work full-time for a qualifying employers.

Part-time employment will also count if you work a combined average of at least 30 hours per week for two or more qualifying employers at the same time.

What is a qualifying employer? A qualifying employer includes the government (federal, state, local, tribal), a nonprofit organization that is tax-exempt under Section 501(c)(3) of the Internal Revenue Code, or a nonprofit organization that provides certain types of public services. 

You can verify that your employer qualifies for PSLF by using the U.S. Department of Education’s PSLF Employer Search Tool. If the Search Tool doesn’t find your employer, it might be because no one with your employer has applied for PSLF before. It is still possible that the employment qualifies for PSLF. You can learn more about the requirements for qualifying employmers on the U.S. Department of Education’s website

What does full-time mean?  You must work at least 30 hours per week or the number of hours your employer considers full-time, whichever is greater. For example, if you worked 32 hours per week but your employer considered 40 hours per week to be full-time, your employment will not qualify. However, borrowers who had more than one qualifying part-time job at the same time can meet the full-time requirement if they worked a combined average of at least 30 hours per week.  

2. Identify your federal loan types to see if you need to consolidate.

Borrowers can have several different types of federal loans, including Direct Loans, Federal Family Education Loans (FFELs), and Perkins Loans. To qualify for the Limited PSLF Waiver, borrowers with federal loan types that are not Direct Loans (e.g., borrowers with FFEL or Perkins Loans) must consolidate those loans into the Direct Loan Program by October 31, 2022. 

  • Parent PLUS Loans are not directly eligible for the Limited PSLF Waiver. However, Parent PLUS Loans that were previously consolidated into a Direct Consolidation Loan will receive credit for repayment periods after the consolidation. Additionally, if Parent PLUS Loans are or were consolidated with student loans that the parent took out for their own education, the entire resulting Direct Consolidation Loan can receive credit under the waiver based on the parent’s student loans

Here’s how to see what type(s) of federal loans you have:

  • Log into your Federal Student Aid (FSA) Account at studentaid.gov. If you haven’t already set up an FSA ID, please create one.  
  • Once logged in to studentaid.gov, click “View Details.”
  • In the “Loan Breakdown” section, you will see a list of your loans (even if you paid the loan off or consolidated it into a new loan).
  • For each servicer with an active loan, click “View Loans.” Then click the “View Loan Details” arrow next to each loan to display the loan type. Direct Loans begin with the word “Direct.” Federal Family Education Loans start with “FFEL,” and Perkins Loans include the word “Perkins” in the name.

Please note that private loans are not eligible for PSLF or the Limited PSLF Waiver. Private loans will not appear in your studentaid.gov account.

3. Consolidate any non-Direct Loans into the Direct Loan Program.

If you have any federal loans that are not Direct Loans (e.g., FFEL or Perkins Loans), you must apply to consolidate those loans into the Direct Loan Program by October 31, 2022.  

How to consolidate.  You can apply for a Direct Consolidation Loan from the U.S. Department of Education’s consolidation website in one of two ways

Choosing a servicer.  For faster processing, the U.S. Department of Education recommends choosing MOHELA, the newly appointed PSLF servicer. If you apply to consolidate online, checking the “PSLF” box on your consolidation application, will cause your application to be directed to MOHELA. If you are mailing in a paper consolidation application, you can send your completed application to MOHELA at the following address:

MOHELA
c/o Aidvantage LCP - E1140
PO Box 8008
Fishers, IN 46038-8008 USA

Please note that although you have chosen MOHELA, the initial processing will be handled by Aidvantage, which is another federal loan servicer. During this initial process, you will work with and receive communications from Aidvantage.

Choosing a repayment plan.  In connection with your consolidation application, you will need to choose a repayment plan for your new Direct Consolidation Loan. Borrowers who apply to consolidate online will be asked to choose a repayment plan as part of that process. Borrowers who submit paper consolidation applications will need to download the Repayment Plan Request form or the Income-Driven Repayment Plan Request form. After downloading, printing, and completing the relevant form, you should mail the request form to MOHELA or your chosen servicer. If you are submitting an Income-Driven Repayment Plan Request form, you will also need to include the income documentation described on page 5 of the form.    

Because the Limited PSLF Waiver is in effect until October 31, 2022, you may want to choose the repayment plan that results in the lowest payment through that date. However, to continue earning credit towards loan forgiveness after the waiver ends on October 31, 2022, most borrowers will need to switch to a repayment plan that qualifies under traditional PSLF rules by November 1, 2022. For more information on this topic, please read Section 7 below.

Questions about consolidation.  You can call the Federal Aid Information Center at 1-800-433-3243 if you have questions about how to consolidate.

4. Even if you have Direct Loans, find out if consolidating can speed up forgiveness.

Even if some or all of your loans are Direct Loans, below are two scenarios in which consolidating your existing loans into a single Direct Consolidation Loan may help you get forgiveness faster. However, keep in mind that if you made more than 120 qualifying payments on an existing Direct Loan, consolidating that loan will disqualify you for any potential refund of the payments you made on that loan beyond the 120 required for forgiveness.

  • If some of your loans have been in repayment longer than others, consolidating may speed up forgiveness.  Direct Consolidation Loans will be credited with the largest number of qualifying months among the loans that were consolidated. So, if some of your loans have been in repayment longer than others (e.g., you worked full-time for a qualifying employer between undergraduate and graduate studies), forgiveness will come faster on your more recent loans if you consolidate them with your older loans. The entire new Direct Consolidation Loan will receive the credits associated with the underlying loan that had the largest number of qualifying months.
    • For example, if you had 50 qualifying months on one federal loan and 100 qualifying months on another, and you consolidate the two loans, the new Direct Consolidation Loan will receive 100 qualifying months towards loan forgiveness under the waiver.
  • If you have Parent PLUS Loans and your own student loans, consolidating may speed up forgiveness.  Parent PLUS Loans are not directly eligible for the Limited PSLF Waiver. However, if Parent PLUS Loans are consolidated with student loans taken out for the parent’s education, the resulting Direct Consolidation Loan will receive credits under the waiver based on the parent’s student loans. 
    • For example, a borrower was in repayment on a Parent PLUS Loan from January 2012 through December 2021 and their own student loan from January 2010 through December 2021. The borrower consolidated the two loans in December 2021. While the waiver will not consider the repayment history on the Parent PLUS Loan, the repayment history on the parent’s own student loan will count, and the entire Direct Consolidation Loan made in December 2021 will receive credits towards loan forgiveness for January 2010 through December 2021

However, by consolidating your Parent PLUS Loans with your own student loans, the resulting Direct Consolidation Loan will be restricted to the Income-Contingent Repayment (ICR) plan, which may require higher monthly payments and offer less favorable terms than other Income-Driven Repayment Plans.

5. Ensure your employment certifications are up to date.

If you do not have approved employment certifications on file for all your qualifying employment periods since the October 1, 2007 start date of the PSLF Program, you must file a PSLF Form to certify your employment for each uncertified period by October 31, 2022You should file a PSLF Form for any period you are unsure about. 

How to fill out the PSLF Form. You can fill out the PSLF Form in one of two ways:

  • You can use the PSLF Help Tool to assist you in starting the PSLF Form. Once you enter your information, you’ll be able to print the partially completed form for you and your employer to sign.  
  • Or, you can download the PSLF Form and you and your employer can complete all sections before you submit it.

Typically, your employer’s human resources department will help complete the PSLF Form and sign it on behalf of your employer.  

Accepted Signature Types. To be accepted, digital signatures from you and your employer must be hand-drawn (e.g., from a signature pad, mouse, finger, or by taking a picture of a signature drawn on a piece of paper that you then scan and embed on the signature line of the PSLF Form). Typed signatures, even if made to mimic a hand-drawn signature, or security certificate-based signatures are not accepted.

Where to send the completed PSLF Form. After filling out the PSLF Form and obtaining your employer’s signature, you can mail or fax it to MOHELA, the federal loan servicer appointed by the U.S. Department of Education to administer the PSLF Program. If MOHELA is already your servicer, you may upload your PSLF Form on MOHELA's website

Mailing Address:          

U.S. Department of Education
MOHELA
633 Spirit Drive
Chesterfield, MO 63005-1243

Fax Number: 866-222-7060

Avoiding employment certification gaps and problemsBelow are tips on avoiding common employment certification gaps and problems. Make sure to submit your employment certifications before the waiver ends on October 31, 2022 and that they are fully up-to-date as of your October 2022 payment due date

  • If you do not currently have any Direct Loans, consolidate your loans into the Direct Loan Program before submitting a PSLF Form to certify your employment. Otherwise, your employment certification could get rejected or end up in limbo. After consolidating, submit a PSLF Form for any qualifying employment you held after October 1, 2007 (the start date of the PSLF Program).
  • If you previously consolidated some or all of your federal loans into a Direct Consolidation Loan, your employment certifications might not have included your employment from before the date of consolidation. We recommend filing a PSLF Form to certify any qualifying employment you had between October 1, 2007 and the date of consolidation. 
  • If you previously submitted an employment certification while you only had non-PSLF-qualifying loan types (e.g., while you only had FFEL or Perkins loans), you should file a PSLF Form to certify this employment again—even if you later consolidated into the Direct Loan Program.
  • If you believe you have made more than 120 qualifying payments on an existing Direct Loan, submit all your outstanding employment certifications at the same time. Otherwise, it is possible that forgiveness will be processed without a complete record of your qualifying employment, which could result in a smaller refund. (Keep in mind that only borrowers who made more than 120 qualifying payments on an existing Direct Loan are eligible for a refund).

6. If you were steered into forbearance, complain to the U.S. Department of Education.

To address the harm that federal loan servicers caused by inappropriately steering borrowers into long-term forbearances, the U.S. Department of Education announced that it will conduct a one-time account adjustment later this fall that will count forbearance periods of more than 12 consecutive months or more than 36 cumulative months towards forgiveness under PSLF. However, borrowers who believe they were steered or forced into shorter-term forbearances can seek account reviews and credit towards PSLF by filing a complaint with the Federal Student Aid Ombudsman at StudentAid.gov/feedback.

7. Plan to pay under traditional PSLF (or maybe TEPSLF) rules after October 31, 2022.

Through the Limited PSLF Waiver, some borrowers will reach 120 qualifying payments by October 31, 2022 and receive loan forgiveness. Others will receive an increase in their qualifying payment count but will need to continue working towards loan forgiveness after the waiver ends on October 31, 2022. These borrowers must start paying under traditional PSLF rules as of November 2022including paying under an income-driven plan or a standard 10-year plan. (Please note, that the “standard plan” for Direct Consolidation Loans does not qualify under traditional PSLF Rules.)

Traditional PSLF rules. For payments to qualify towards forgiveness under traditional PSLF rules, they must be made on a Direct Loan:

  • under an income-driven plan or the 10-year standard plan,
  • for the full amount due as shown on your bill,
  • not later than 15 days after your due date, and
  • while you are employed full-time by a qualifying employer.

The following repayment plans do not qualify under traditional PSLF rules:

  • standard repayment plans for Direct Consolidation Loans,
  • graduated repayment plans,
  • extended repayment plans, or
  • alternative repayment plans.

To learn about all of the traditional PSLF rules, please visit the U.S. Department of Education’s website.

Be prepared—traditionally-qualifying PSLF repayment plans may result in higher payments. Borrowers may find that the payments required by traditionally-qualifying PSLF repayment plans, including income-driven plans, are higher than their typical payments. In such cases, borrowers should weigh the cost of making the higher payments for the number of months it will take to receive loan forgiveness against the cost of repaying their loans in full over time with interest (often over a 25- or 30-year period).  

  • You can use the U.S. Department of Education’s Loan Simulator to find out what your payments would be under a traditionally-qualifying PSLF repayment plan. 

Payments may be lower under repayment plans eligible for Temporary Expanded Public Service Loan Forgiveness (TEPSLF) but counting on TEPSLF may be risky. The TEPSLF Program enables borrowers to potentially receive forgiveness based on payments made under repayment plans that don’t typically count towards PSLF, including:

  • standard repayment plans for Direct Consolidation Loans,
  • graduated repayment plans, and
  • extended repayment plans.

In some cases, TEPSLF-eligible repayment plans may offer lower payments than traditionally-qualifying PSLF repayment plans. Borrowers who can’t afford traditionally-qualifying PSLF repayment plans and those who expect to be close to having 120 qualifying months towards forgiveness by October 31, 2022 may wish to consider making payments under the rules of the TEPSLF Program after the waiver ends on October 31, 2022. However, it may be risky to rely on TEPSLF since it is a temporary program with limited funding. It is possible that TEPSLF will no longer exist by the time borrowers reach 120 qualifying payments. Were this to occur, payments made under TEPSLF-eligible repayment plans would not count towards loan forgiveness under PSLF.

TEPSLF has other rules too. While TEPSLF will count payments made under certain repayment plans that don’t traditionally qualify for PSLF, all of the other traditional PSLF rules apply to TEPSLF (e.g., only Direct Loans are eligible, and payments must be made in full and on time). Also, to receive forgiveness under TEPSLF, borrowers must pay at least certain amounts in two particular months. Specifically, the payment made 12 months before applying for TEPSLF and the last payment made before applying for TEPSLF must equal or exceed the amount the borrower would have been required to pay under an income-driven plan. This is an important hurdle that borrowers should be aware of and plan for if they intend to pursue TEPSLF. You can learn more about TEPSLF’s rules on the U.S. Department of Education’s website.

8. Avoid scams.

Student loan “debt relief” companies charge fees for helping federal student loan borrowers to enroll in income-driven repayment plans, consolidate loans, or get out of default. There is nothing these companies can do for you that you can’t do on your own for free!

Some of these companies are trying to take advantage of circumstances related to the pandemic and government relief packages. If someone contacts you asking for your personal information or for money to help you pursue loan forgiveness—it’s a scam.  Scammers may also claim you are eligible for immediate loan forgiveness through “Biden Loan Forgiveness” or “CARES Act Loan Forgiveness.” You can learn more about the other warning signs of a debt relief scam on the U.S. Department of Education's Website.

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