It’s Forgiveness Friday!

We hear so much in the media about challenges related to the PSLF program, which DO exist for many early participants in the program… but increasingly, we’re seeing successes, and today we wanted to share with you one such anecdote:

FedLoans has recently been contacting borrowers enrolled in PSLF, offering refunds to those who have been making payments since March of last year when the CARES Act interest and payment halt took effect:

But don’t take our word for it… This is language from a recent letter from FedLoans:

“According to our records, you are a Public Service Loan Forgiveness (PSLF) borrower who made payments during the COVID-19 emergency relief period. Did you know that during this time, borrowers who do not make payments can receive credit toward PSLF for the period of suspension? That is right, you do not need to make your monthly payments to have them count toward the 120 qualifying payments needed for PSLF. All you are required to do is certify that you worked full-time for a qualifying employer during the suspension.

Your Options

• Receive a refund. If you made payments and now realize you were not required to, you can request a refund for all payments made since March 13, 2020.

• Opt back into the suspension of payments. If you have opted out of the suspension, you can opt back in through at least September 30, 2021.”

Now THAT’S what we like to see! Stay tuned for more Forgiveness Friday nuggets of wisdom, and GOOD news from this increasingly successful program!

About Author

Jason DiLorenzo

Jason is the Founder of BenElevate, an early stage fintech company working to address the student debt crisis by bringing to bear tools, expertise, and bespoke solutions to streamline student debt management for borrowers and employers.

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