The Public Service Loan Forgiveness (PSLF) Limited Waiver is working: More than 90% of all forgiveness granted has come through its expanded eligibility, with the US Department of Education granting more than $10 billion in debt relief to more than 175,000 student loan borrowers, according to the DOE.
It was disappointing, then, that the waiver was not extended as part of the Biden Administration’s sweeping actions around student loan debt last month, including forgiving thousands in loans for millions of borrowers. And even though HR leaders and their employees are left scratching their heads at the timing (extensions have practically become par for the course in our space), the good news is that many more individuals are aware of PSLF. Couple employee awareness and interest with employer support, and you have a recipe for forgiveness!
Despite the program’s efficacy, just 15% of eligible borrowers have even applied for the waiver, and we regularly hear from borrowers who don’t even know that they are eligible — many think the program is only for teachers, for instance, when the program really exists for a much broader set of the population working in public service.
As the October 31 expiration quickly approaches, it’s essential that borrowers work to get their applications in beforehand. From there, we should plan for the eventual wind-down of the waiver. In both instances, it’s crucial that employers recognize the ways in which…
