Department for Education eases civil service loan forgiveness requirements for borrowers

The Biden administration announced on Tuesday, October 25 permanent changes to the cancellation of utility loans, making it easier for some borrowers to get relief.

Those with utility loans can now get credit for partial, late or lump sum payments or payments made under a different payment plan.

The PSLF program allows those who work for the government or specific nonprofit organizations to obtain debt forgiveness after 10 years or 120 payments.

However, the path to forgiveness has been plagued with “bureaucracy,” Cardona said. He added that the new changes will reduce the bureaucracy that has clouded the program.

To qualify, however, you must have a direct loan, according to CNBC.

Borrowers, who have either a Federal Family Education Loan (FFEL) or a Federal Perkins Loan, now have until July 2023 to consolidate loans into direct loans with lenders.

Department of Education officials suggest these borrowers must apply for consolidation by May 1, 2023.

The plan makes permanent some changes the Biden administration introduced a year ago with an expiration date of Oct. 31.

“I am incredibly proud that the temporary changes made by the Biden-Harris team to the cancellation of public service loans (PSLF) have helped more than 236,000 teachers, nurses, veterans, government employees and other workers in the public service to obtain more than $14 billion in debt relief,” said the U.S. Secretary. of Education Miguel Cardona said. “Today, we encourage public servants to take advantage of the temporary changes to the program before the October 31 deadline.

Our journalism needs your support. Please subscribe today to

Katherine Rodriguez can be reached at [email protected]. Do you have any advice? Tell us at

About Kristina McManus

Check Also

Non-majors follow suit with rate hikes

Non-major banks are fully passing on the latest rate hike from the Reserve Bank of …