In the wake of the announcement about the student loan forgiveness program in mid-August 2022, you may be left with some questions about the effect it could have on your own finances — especially if you are serving in the military or public service.

The U.S. Department of Education (Department) announced that it has approved more than $10 billion in debt relief for more than 175,000 borrowers in the next 10 months through the Public Service Loan Forgiveness (PSLF) program.

Temporary Changes to PSLF

The temporary changes allow student borrowers to get credit for payments made on loans from the Federal Family Education Loan (FFEL) Program, Perkins Loan Program, and other federal student loans. These borrowers must apply to consolidate their loans into a Direct Consolidation Loan before the deadline of October 31, 2022, to qualify for the forgiveness program under the temporary changes.

What does this mean for members of the Military?

This opportunity is BIG NEWS for servicemembers, but you have to act before October 31, 2022.

In addition, borrowers who are employed by nonprofits, the military, or federal, state, Tribal, or local government may be eligible to have all of their student loans forgiven through the Public Service Loan Forgiveness (PSLF) program. This is because of time-limited changes that waive certain eligibility criteria in the PSLF program. These temporary changes expire on October 31, 2022. For more information on eligibility and requirements, go to PSLF.gov.

Facts on Debt Relief: https://studentaid.gov/debt-relief-announcement/