We are in the early stages of the PSLF Limited Waiver which is estimated to help over 550,000 federal student loan borrowers qualify for Public Service Loan Forgiveness (PSLF). To date, our PSLF Limited Waiver borrowers have averaged over $120,000 in student loan forgiveness. The range of loan forgiveness has been from $17,000 up to over $350,000 per borrower.
This provision was signed into law on October 6, 2021. It fixes many of the errors that caused borrowers to be denied PSLF in the past. The PLSF Limited Waiver program registration expires on 10/31/2022 and my concern is that many eligible borrowers may not be acting on this great opportunity, soon enough. The other issue is it only fixes the errors that occurred before 10/31/2021. This is important to know since these borrowers are not earning PSLF credits since November 1, 2021.
Who is Qualifying for PSLF Limited Waiver?
The PSLF rules are very specific on the type of employment, length of time, and making payments. That has not changed. What this law does fix is the incorrect accounting of your payments, the repayment method, and the types of loans that qualify for loan forgiveness.
The majority of the borrowers that we have helped have the following qualifications:
- Normally over age 30
- Have FFEL and/or Direct federal loans
- Have been employed Full-Time by a Non-profit or government agency for 7+ years
- Made payment during that same employment time
Many of these borrowers had applied and were denied previously for one or more of the items listed above. The PSLF Limited Waiver Program gives the borrowers the additional earned PSLF credits by accepting those previously identified errors. As a result, PSLF is then attainable since the borrower has now earned the 120 credits or is much closer due to added new credits.
It Seems To Good to Be True Comment
The original PSLF program has gotten some bad press due to the complexity, bad advice provided, and high rejection rate. A great number of borrowers, that were denied, were often frustrated with the loan servicers’ prior responses. I would recommend that you try one more time.
The most common comment we get is “This sounds too good to be true based on the amount of money that will be forgiven”. Each borrowers’ situation is unique and their previous rejections caused a level of doubt. Here are three key questions that you should answer to determine if you might qualify for the PSLF Waiver Program.
- Did you have federal loans, Direct or FFEL?
- Did you work full-time at a qualifying employer?
- Did you make monthly payments during that employment time?
If the above answers are all yes, then you have a good chance of earning the previously denied PSLF that you earned.
Navigate the Process
As I stated before, each borrowers’ error situation is different and that needs to be identified first. As an example, a borrower’s problem could be that they are in the wrong repayment or they have FFEL loans. Maybe they have both errors which would require a different sequence of information submissions.
The biggest unknown in the process is the waiting. The borrower needs to submit the paperwork in the proper sequence to maximize the opportunity. Once it is submitted the loan servicer and Department of Ed will review the information to determine the number of PSLF credited months that they earned.
For some, the credits will reach the 120 PSLF credited months needed for forgiveness and no future payments will be required. Others, who need to make additional payments, will need to properly select the best Income-Driven Repayment (IDR) to reach the 120 credited payments. For some, this may only be a few months, and for others, a longer period may be required. To date, the longest period we have seen is 18 months.
Christy Barilotti, CEO of Barilotti Wealth Strategies and Insurance Solutions, LLC has had a few of her clients benefit from this program. She states: “Fred and his team at PayForED have been a beacon of light in this ever-changing, very confusing time in student loan forgiveness. Our clients are super excited about learning that they had options with the PSLF Limited Waiver!”
PSLF Limited Waiver Average Saving Summary
This program is a great step in helping borrowers who thought they would qualify for loan forgiveness and did not, initially. You have a second chance to now qualify. The opportunity is available but it still can be a little difficult to navigate and that is where PayForED can help.
Borrowers need to be careful about who they hire if they need help. There have been numerous student loan forgiveness scams out there. Here is a link to our 10 steps process to the PSLF Limited Waiver program which may help the DIY.
To get final approval or notification, it may take 2 – 5 months depending on the borrower’s situation and the proper submission of the information. This is important to know since if you feel you have reached the 120 payments, the repayment restart on 5/1/2022 may not be needed.
PayForED is currently offering free 15-minute reviews to see if you qualify for this program. Click to set up a time