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Tuesday, October 4, 2022


Posted: Tuesday, October 4, 2022

Public Service Loan Forgiveness Eligibility for State Employees

The Department of Education announced temporary changes to the Public Service Loan Forgiveness (PSLF) Program on October 6, 2021. The benefits from those changes are available until October 31, 2022, if eligibility criteria are met.

Full-time employees of New York State may have federal Direct Loans forgiven after 10 years of public service through the federal Public Service Loan Forgiveness (PSLF) program.

Ordinarily, payments on Federal Family Education Loans (FFEL), Perkins, or other non-direct federal loans did not qualify toward the 120 loan payments required for loan forgiveness under the PSLF program; however, under the temporary waiver program, payments on non-direct loans (e.g., FFEL loans) may count toward the 10 years of loan payments required for loan forgiveness. The waiver program will also count certain payments on non-direct loans that were received late, made for less than the full amount due, or made in the wrong payment plan.

If you have FFEL, Perkins, or other non-direct federal loans, you must consolidate them into a federal Direct Consolidation Loan to take advantage of the current limited PSLF waiver and for loan forgiveness to be granted.

Borrowers with non-direct federal loans must take the following two affirmative steps before October 31, 2022, to take advantage of the Public Service Loan Forgiveness program waiver:

Apply to consolidate your federal loans into a Direct Consolidation Loan online or by calling your student loan servicer.

Complete the PSLF form. You may use the PSLF Help Tool to assist you in starting the PSLF form. After filling out Sections 1 and 2, you must have your employer complete Sections 3 and 4. The completed form must then be submitted to the address identified in Section 7 of the form.

You may use the PSLF Help Tool to learn more, search for a qualifying employer, or begin your application for loan forgiveness. You may also contact your student loan servicer for information. Please visit the New York State Department of Financial Services website for more information about the recent changes to the PSLF program or to request assistance.

Submitted by: Jamie E. Warnes