How to apply in 2021

Here’s a look at what has changed and how the estimated 600,000 borrowers it could affect can apply.

Biden’s changes to the PSLF program

Students can now become eligible for a possible loan forgiveness under any repayment plan. Previously, the limits of eligible repayment plans were more stringent.

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According to the Department of Education, “any previous payment made while you were working for an eligible employer will count as an eligible payment, regardless of loan type or repayment plan.”

This makes it easier for students to maintain their eligibility throughout their career in the public service. Previously, only income-based repayment plans or standard 10-year repayment plans counted.

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In addition, alumni can now access a loan discount on direct or non-direct federal student loans. Previously, the program was only for borrowers with direct federal student loans, but now non-direct federal loans (including federal family education loans and Perkins loans) count. Additionally, while loan consolidation previously restarted the rebate program clock with a set repayment period, pre-consolidation payments now count.

Payments that were previously rejected for technical reasons will be reinstated to help increase the number of canceled loans (the Ministry of Education will conduct a multi-month audit to this effect).

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Finally, the military and veterans benefit from some flexibility. The Education Department says it “will allow months spent on active duty to count towards the PSLF, even if the service member’s loans were deferred or withheld rather than canceled. active reimbursement “.

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