“Thank YOU,” writes Cara Christensen, a first-grade teacher in Washington state who read NPR’s deep dive into the troubled Public Service Loan Forgiveness program (PSLF). The reporting, she says, “made me feel not so alone.”
We received dozens of emails, tweets and Facebook comments from aggrieved borrowers responding to news that, over the past year, 99 percent of applications for the popular loan-forgiveness program have been denied.
PSLF offers the promise of loan forgiveness to nurses, teachers, first-responders and other student borrowers who work in public service for 10 years while keeping up with their loan payments. But it has been plagued by poor communication from the U.S. Department of Education and mismanaged by servicing companies the department pays to run its trillion-dollar student loan portfolio.
The U.S. Department of Education (Department) has launched a process for federal student loan borrowers to be reconsidered for loan forgiveness under a temporary expansion of the Public Service Loan Forgiveness (PSLF) Program.
This limited opportunity—which the Department is referring to as Temporary Expanded PSLF (TEPSLF)—was made possible by a $350-million appropriation through the Consolidated Appropriations Act, 2018. The law provides additional conditions under which borrowers may become eligible for loan forgiveness if some or all of their payments made on William D. Ford Federal Direct Loan (Direct Loan) Program loans were made on a nonqualifying repayment plan for the PSLF Program. This opportunity is only available on a first-come, first-served basis until the $350 million has been allocated or other criteria are met.
The Department will reconsider eligibility for the TEPSLF opportunity using an expanded list of qualifying repayment plans, which includes the Graduated Repayment Plan, Extended Repayment Plan, Consolidated Standard Repayment Plan, and Consolidated Graduated Repayment Plan. Funds for this opportunity are limited, and borrowers will be considered on a first come, first serve basis. Once funds under this opportunity are depleted or other criteria are met, the program will end.