Attorney general reminds public servants to apply for student debt relief ahead of deadline

New Yorkers working in government or nonprofits are eligible for loan forgiveness for both direct and non-direct federal loans

√ Deadline for qualifying borrowers to consolidate their loans and apply for PSLF program is Oct. 31, 2022

New York Attorney General Letitia James reminded public servants to apply for the Limited Waiver Public Service Loan Forgiveness (PSLF) program ahead of the Oct. 31 deadline. The PSLF program offers forgiveness of any remaining federal student loan debt after a borrower makes 120 qualifying payments while working full-time for a government or qualifying nonprofit.

“Public servants have spent their careers working for New York residents and helping to build a stronger and fairer state,” James said. “The PSLF program is another tool that helps address the student debt crisis, and enables public servants to be recognized for their hard work and dedication. I encourage public servants who qualify to take advantage of the program and apply for debt forgiveness before the upcoming deadline.”

The Limited Waiver PSLF program expands access for loan forgiveness. The program counts payments on multiple federal loans and past payments, including missed, partial or late payments, as qualifying repayments toward the 120-payment threshold for forgiveness. Previously, only payments on federal direct loans counted, and only individuals with those loans qualified. Now, New Yorkers can consolidate their other federal loans – such as Federal Family Education Loan (FFEL) loans and Perkins loans – into direct loans, and have their past payments count and become eligible.

New Yorkers can determine if they work for a qualifying employer online on the Federal Student Aid website. Eligible borrowers can apply online now to consolidate their loans into federal direct loans and have their debt forgiven by the deadline of Oct. 31.

Who Is Eligible for the Limited Waiver PSLF Program?

To qualify for loan forgiveness under the Limited Waiver PSLF program, borrowers must meet both of these conditions: have direct loans, from when they originally borrowed or through consolidation, and submit a PSLF form to certify qualifying employment. Specifically:

•If borrowers have all direct loans and have submitted a PSLF certification: No action is needed and the Department of Education will review the submission.

•If borrowers have both direct loans and non-direct loans (FFEL, Perkins or others) and have submitted a PSLF certification: They must consolidate non-direct loans into a direct consolidation loan to have prior periods of repayment on those non-direct loans count toward the 120-payment threshold for forgiveness. Borrowers can consolidate loans on the Federal Student Aid website.

•If borrowers have only non-direct loans (FFEL, Perkins, or others): They may be eligible for PSLF if they work for a qualifying employer and consolidate loans into a direct consolidation loan. Borrowers can use the PSLF help tool to determine whether their employer is a qualifying employer. If borrowers work for a qualifying employer, they can consolidate loans online. Once loans are consolidated, borrowers can use the PSLF help tool to create a form, which should be sent to the PSLF loan servicer, MOHELA.

•If borrowers have all direct loans but have not submitted a PSLF certification: They may be eligible for PSLF if they work for a qualifying employer. Borrowers can use the PSLF help tool, available on the Department of Education’s website at https://studentaid.gov/pslf/, to determine whether their current employer is a qualifying employer. If borrowers work for a qualifying employer, they can use the PSLF help tool to generate a form, which should be sent to MOHELA.

•If borrowers have both direct loans and non-direct loans (FFEL, Perkins or others) and have not submitted a PSLF certification: They may be eligible for PSLF if they work for a qualifying employer and consolidate their non-direct loans into a direct consolidation loan. Borrowers can use the PSLF help tool, at studentaid.gov/pslf, to determine whether their employer is a qualifying employer. If borrowers work for a qualifying employer, they can consolidate their loans at studentaid.gov/consolidation. Once loans are consolidated, borrowers can use the PSLF help tool to generate a form, which should be sent to MOHELA

How Can I Apply for the Limited Waiver PSLF and Get PSLF Credit?

Borrowers who believe they may be able to qualify for the Limited Waiver PSLF program should review the Federal Student Aid’s website explaining the program in detail.