Purdue employees with outstanding federal student loans may be eligible for debt relief through the Public Service Loan Forgiveness Program (PSLF). The PSLF cancels the remaining balance on federal direct loans after individuals make 120 qualifying payments while working full-time for an eligible employer like Purdue.
The U.S. Department of Education recently announced a temporary but significant waiver of PSLF program rules for borrowers who have experienced issues interacting with the program. The waiver, called the limited PSLF waiver, allows borrowers who had the wrong type of loans or payments to get credit for those past periods.
Here are the main improvements available under the waiver:
- Borrowers can receive credit for prior repayment periods on loans that would otherwise not qualify for PSLF.
- Individuals who have Federal Family Education Loans (FFEL), Perkins Loans, or other Federal Student Loans (not Parent PLUS Loans) must first consolidate their student loans into a Direct Consolidation Loan to receive a PSLF credit for previous periods or reimbursement.
- Past repayment periods will now count regardless of whether the borrower made a payment, or made that payment on time for the full amount due, or on an eligible repayment plan.
The waiver is only available to borrowers until October 31. To take advantage of the waiver, individuals must:
- Register for an FSA ID if they don’t currently have one.
- Have direct loans (or consolidate other federal loans into one direct loan if necessary).
- Submit a PSLF form to certify employment for the time for which they want credit through the waiver. Individuals can generate a PSLF form for Purdue to sign at Federal Student Aid. It is important to use the appropriate Purdue University Federal Employer Identification Number (EIN 35-6002041 in the PSLF Help Tool. After the PSLF Helper Tool provides a PDF, individuals must sign and date and submit it via Purdue Human Resources – uConfirm.
There is no specific application for the waiver. Once borrowers submit PSLF and/or consolidated forms in the Direct Lending Program, they will automatically be enrolled and receive either a discount (if eligible) or an increased number of qualifying payments.
This opportunity is urgent as borrowers will need to consolidate their loans and/or submit a PSLF form. Learn more about the Limited PSLF waiveror contact one of the U.S. Department of Education’s customer service representatives at 1-800-433-3243.
Source: David Reseigh, Associate Director of Outreach Services, Purdue University Division of Financial Aid, 765-494-5050, reseigh@purdue.edu