The Public Service Loan Forgiveness (PSLF) program, established in 2007, has long been plagued by various issues, leaving many borrowers frustrated and confused. While the program was designed to provide relief to not-for-profit and government employees after 10 years of on-time payments, the reality has been far from ideal. Numerous borrowers find themselves in a situation where they thought they were on track for loan cancellation, only to discover that they do not actually qualify for a variety of technical reasons. Lenders have been criticized for providing misleading information and mishandling timelines, further exacerbating the challenges faced by borrowers.

The Biden Administration’s Efforts to Reform

In response to the ongoing challenges with the PSLF program, the Biden administration has embarked on a mission to overhaul and improve the program. The government plans to centralize all PSLF information on StudentAid.gov to provide borrowers with real-time and accurate updates on their payment counts and form processing. Previously, the program’s servicing was managed by a single company on behalf of the government, but going forward, multiple companies, along with the Education Department, will handle the servicing of accounts. As part of the transition, the Education Department has announced a partial processing pause, which is expected to last for approximately two months, during which borrowers will not be able to access their payment counts on MOHELA’s website.

How Borrowers Will Be Affected

Higher education expert Mark Kantrowitz has noted that PSLF forgiveness will be suspended during the transition period. However, borrowers are encouraged to continue making their loan payments as usual, as these payments will still count towards their timeline for loan forgiveness. Borrowers who have reached the 10-year mark and are eligible for loan forgiveness can still submit the necessary forms to certify their public service employment. The Education Department has assured borrowers that once the transition is complete, the forms will be promptly reviewed. In the meantime, borrowers who qualify for debt cancellation can request a forbearance from their servicer and seek refunds for any overpayments.

While the temporary processing pause may cause inconvenience for borrowers, the changes being implemented by the Biden administration aim to streamline and enhance the PSLF program to better serve those who are dedicated to public service. By centralizing information and improving customer service, the government hopes to alleviate some of the challenges and frustrations faced by borrowers in the past. As the transition progresses, borrowers are advised to stay informed and continue making timely payments to ensure they remain on track for loan forgiveness.


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