Virginia Tech® home

Updates to eligibility, requirements for Public Service Loan Forgiveness program

The Public Service Loan Forgiveness (PSLF) program, established in 2007, forgives the remaining balance on Direct Loans after the borrower has made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. Virginia Tech is an approved employer for PSLF as it is an institution of public education.

In October 2021, the U.S. Department of Education announced a change to PSLF program rules, as a result of the COVID-19 national emergency. For a limited period of time (one year), borrowers may receive credit for past periods of repayment that would otherwise not qualify for PSLF. Here are some of the key points of the changes to PSLF:

  • If you have FFEL, Perkins, or other federal student loans, you'll need to consolidate your loans into a Direct Consolidation Loan to qualify for PSLF both in general and under the waiver.
  • Past periods of repayment will now count regardless of whether you made a payment, made that payment on time, for the full amount due, on a qualifying repayment plan.
  • Periods of deferment or forbearance, and periods of default, continue to not qualify.

Unchanged requirements for PSLF include making 120 qualifying payments or the equivalent, being employed by government, 501(c)(3) not-for-profit, or other not-for-profit organization that provides a qualifying service (Virginia Tech is a qualified employer), working full time, having Direct Loans or consolidate into Direct Consolidation Loans, and certifying qualifying employment for the periods of time for which the borrower want credit toward PSLF.

To take advantage of this opportunity, PSLF paperwork must be submitted before the end of October 2022 and include employment verification from Human Resources. Visit the PSLF website for more information and qualifications.

 

Share this page