A New, More Optimistic Chapter for PSLF

Since it was created 15 years ago, Public Service Loan Forgiveness has been off to a rocky start, but it’s finally starting to see some major progress. President Biden campaigned on refreshing the student loan system—including reforming PSLF—and is making good on his promises. One big push has been for increased scrutiny of student loan servicing companies that have managed the program poorly. Perhaps the most exciting change is the Limited Waiver Opportunity, which is in effect through October, 2022.

The Limited Waiver Opportunity Makes PSLF Available to More PhysiciansThan Ever Before

Over its history, a few fortunate physicians have been able to receive loan forgiveness through PSLF, but this is changing with the LWO. Under the previous rules, only those who had made 120 qualifying payments on very specific types of federal student loans, while on one of the right payment plans, and working full-time for a non-profit employer could qualify for PSLF. Although many have applied since 2007, just 2% of applicants were approved with these conditions.

Under the LWO, those in full-time non-profit work can qualify for PSLF regardless of the payment plan they have been on, and most types of federal loans now qualify. Physician borrowers just need to take steps to convert their old loans into a Direct Consolidation Loan and submit a PSLF form to their employer before the period ends in October. Physicians with fewer than 120 payments have an extra step. You will need to get on an income-driven repayment (IDR) plan for your remaining payments to qualify.

It’s taken some time, but there’s real light at the end of the tunnel for many with student loan debt. October will be here before you know it, so let us help you take your place in history and make use of the Limited Waiver Opportunity while you can!