Student-loan borrowers in public service will now have to wait until July for their debt relief forms to be processed
Source: Business Insider
May 2, 2024, 2:59 PM EDT
Some student-loan borrowers hoping for debt relief might have to wait a few months.
Beginning on May 1, the Education Department placed a pause on any processing of applications to the Public Service Loan Forgiveness program, which forgives student debt for government and nonprofit workers after ten years of qualifying payments.
This pause is happening to allow PSLF accounts to be transferred away from student-loan company MOHELA, which was previously the sole servicer tasked with managing the program. During this transition, several different companies will assume management over PSLF accounts, but borrowers will be able to check their PSLF status directly through studentaid.gov rather than through one of the servicers.
The transition is expected to be completed in July, after which borrowers will regain access to their account information. In the meantime, though, while borrowers can still submit PSLF applications, they will not be processed until the pause ends, and they will also be unable to access their PSLF history on MOHELA's portal. Payments are also still due for borrowers during this period.
Read more: https://www.businessinsider.com/public-service-loan-forgiveness-paused-until-july-debt-relief-borrowers-2024-5