In July 2023, the Department of Education implemented permanent improvements to the PSLF program. These improvements are designed to help borrowers get credit for more past payments, and to help more borrowers qualify for forgiveness. These changes are broken down into two goals.
Goal 1: Help borrowers earn progress towards forgiveness
These changes help borrowers count more of their past payments towards forgiveness, putting them closer to the finish line. The changes will:
- Allow borrowers to receive credit toward PSLF on payments that are made late, in installments, or in a lump sum
- Allows borrowers to count the following forbearance and deferment periods towards PSLF:
- Cancer treatment deferment
- Military service deferment
- Post-active-duty student deferment
- Economic hardship deferment, which includes service in the Peace Corps
- AmeriCorps and National Guard service forbearances
- U.S. Department of Defense Student Loan Repayment Program forbearance
- Administrative or mandatory administrative forbearances
- Allow borrowers to receive a weighted average of existing qualifying payments toward PSLF when they consolidate their Direct Loans
Goal 2: Help borrowers certify employment for PSLF more easily
The Department of Education also simplified the criteria for PSLF, in order to make certifying employment easier. These changes include:
- Adopted a single standard of full-time employment at 30 hours
- Requires employers to give adjunct and contingent faculty credit of at least 3.35 hours of work for every credit hour taught
- Allows a qualifying employer to certify employment for a contractor if that individual is providing services that by State law cannot be filled or provided by an employee of that organization.
How do I take advantage of these changes?
These changes were automatically implemented, and will be applied to all borrowers that apply for PSLF moving forward. When you submit an Employment Certification Form, MOHELA will automatically give you credit for any payments that count under these new rules.