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Public Servants Benefit from the Suspension of Student Loan Payments.

The pause on student loan payments has been a win for public servants

The pause on student loan payments has been a win for public servants

Public Service Loan Forgiveness program benefits from student loan payment pause

The federal student loan payment pause, which has been in effect for more than 36 months now and has spanned two presidencies, has been a big win for public servants pursuing the Public Service Loan Forgiveness (PSLF) program. Borrowers have been able to get closer to debt cancellation while not making any payments on their debt.

Higher education expert Mark Kantrowitz said, “We can safely say that borrowers in PSLF have saved thousands of dollars.” The PSLF program, signed into law by then-President George W. Bush in 2007, allows qualifying nonprofit and government employees to have their federal student loans canceled after 10 years, or 120 payments. The Consumer Financial Protection Bureau estimates that one-quarter of American workers could be eligible.

What has the payment pause meant for those pursuing PSLF?

Each month during the pause should count towards a borrower’s timeline on PSLF, whether or not they made a payment. Because of that, experts have recommended that public servants avoid making payments on their debt during this period.

While borrowers pursuing PSLF will get credit for payments during the pause, they still need to be employed with the government or a qualifying nonprofit to be heading towards loan forgiveness. The best way to find out if a job qualifies as public service is to fill out the employer certification form.

When will the payment pause on federal student loans end?

The payment pause on federal student loans is expected to end in September, and borrowers will have to resume payments to get credit for PSLF.

Will sweeping forgiveness have less of an impact on those pursuing PSLF?

If the Supreme Court allows the Biden administration’s sweeping student loan forgiveness program, the impact on borrowers pursuing PSLF may not be too significant, experts say. For some, the $10,000 or $20,000 would wipe away their debt, and they would not have to make any more monthly payments. However, if they still have a balance remaining, their payment would likely not change after the relief, since it is usually calculated as a share of their income rather than total debt.

FAQs:

-What is the PSLF program?

The Public Service Loan Forgiveness (PSLF) program allows qualifying nonprofit and government employees to have their federal student loans canceled after 10 years, or 120 payments.

-How long has the payment pause for federal student loans been in effect?

The payment pause for federal student loans has been in effect for more than 36 months now and has spanned two presidencies.

-What should borrowers pursuing PSLF do during the payment pause?

Experts have recommended that public servants avoid making payments on their debt during this period.

-When will the payment pause on federal student loans end?

The payment pause on federal student loans is expected to end in September.

-Will sweeping forgiveness have less of an impact on those pursuing PSLF?

If the Supreme Court allows the Biden administration’s sweeping student loan forgiveness program, the impact on borrowers pursuing PSLF may not be too significant, experts say.

The pause on student loan payments has been a win for public servants
The pause on student loan payments has been a win for public servants

Public servants benefit from suspension of student loan payments.

The pandemic-era policy that suspended federal student loan payments has been particularly beneficial for public servants pursuing the popular Public Service Loan Forgiveness (PSLF) program, according to CNBC. The policy has allowed borrowers to get closer to debt cancellation without making payments on their debt. The PSLF program, signed into law by President George W. Bush in 2007, allows qualifying nonprofit and government employees to have their federal student loans canceled after 10 years or 120 payments. Each month during the pause counts toward the borrowers’ timeline on PSLF, whether or not they made a payment, meaning nearly a third of borrowers’ required payments for PSLF may be covered by the relief policy. However, borrowers still need to be employed by the government or a qualifying nonprofit to be heading toward loan forgiveness. And when the payment pause on federal student loans ends, likely in September, borrowers will have to resume payments to get credit for PSLF. The Biden administration is also working to make adjustments to people’s accounts to ensure payments score is being counted correctly.

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