Updates Rules for PSLF Borrowers

Last fall, the Department of Education announced new regulations surrounding student loan repayment for those pursuing Public Service Loan Forgiveness (PSLF). This comes after it completed a negotiated rulemaking process that included input from industry professionals like Navigate and our partners in the PSLF Coalition. The new regulations, which took effect July 1, 2023, codify certain fixes that were included in the 2022 Limited Waiver Opportunity.

The new regulations will:

• Count more types of payment towards forgiveness, including late payments. Borrowers will also receive credit toward their qualifying payments for periods of ineligible forbearance and deferment if they make payments equivalent to what they would have owed under an IDR plan (including periods where their required monthly payments were $0).
• Clarify which non-501(c)(3) organizations are qualifying “public service” organizations.
• Simplify the definition of “full-time employment” to a single standard of 30 hours a week.
• Allow borrowers to count existing qualifying payments on Direct Loans even if they consolidate them into a new Direct Consolidation Loan, ensuring it does not wipe out past progress toward forgiveness.
• Formalize a reconsideration process for borrowers whose applications are denied, or who need help correcting problems with their account.

There will surely be kinks in the system as these new rules are implemented, and we encourage borrowers to try and remain patient as everyone catches up. We’re here to help you understand how these new regulations could impact your progress toward PSLF, and can help you make sure that you’re taking full advantage of them. If you have any questions, we’re only a phone call or email away!