PSLF Update from National Council of Nonprofits:
As expected, the Department of Education this month published a formal notice of proposed rulemaking to address student loan forgiveness and affordability issues. The rules propose making permanent some, but not all, of the relaxed eligibility terms in the temporary Limited PSLF Waiver set to expire Oct. 31. Key provisions would allow more kinds of payments (certain types of deferment and forbearance, and payments made in advance, late, or in lump sum) to count as qualifying payments; clarifying and expanding the definitions of full-time employment and qualifying employer; and codifying the reconsideration process. The proposed regulations, if adopted, would also provide a hold-harmless option for deferment or forbearance, automate progress toward forgiveness, and eliminate prospective interest capitalization not required by statute.
Public comments to the proposed rule are due on or before August 12.
See this updated Comparison of Key Provisions chart from the National Council of Nonprofits to get started.
Separately, a coalition of 134 organizations sent a letter to President Biden urging him to extend, expand, and coordinate more closely the current relief provided by the Administration to student loan borrowers. Specifically, the letter seeks greater relief through improvements to the temporary Public Service Loan Forgiveness waiver and other ways to fulfill the promise of affordable and manageable loan repayment for borrowers. The PSLF waiver, set to expire after October 31, 2022, gives credit toward PSLF loan forgiveness to public service workers, including nonprofit employees, whose prior time was previously considered partially or completely ineligible. See the news release and social media toolkit.