VA Central Office June 15, 2022
OFFICE OF THE CHIEF HUMAN CAPITAL OFFICER (OCHCO) BULLETIN
SUBJECT: Public Service Loan Forgiveness Update
This OCHCO Bulletin advises VA employees of the recent change to the rules for the Public Service Loan Forgiveness (PSLF) program under the U.S. Department of Education (ED). The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. To qualify for PSLF, you must:
- be employed by a U.S. federal, state, local, or tribal government or not-for-profit organization (federal service includes U.S. military service);
- work full-time for that agency or organization;
- have Direct Loans (or consolidate other federal student loans into a Direct Loan);
- repay your loans under an income-driven repayment plan*; and
- make 120 qualifying payments.
On October 6, 2021, ED implemented a limited PSLF Waiver. Now, for a limited period of time, federal student loan borrowers may receive credit for past periods of repayment that would otherwise not qualify for PSLF. The waiver will run through October 31, 2022. Employees who have federal student loans may now be eligible for loan forgiveness or additional credit through the Limited PSLF Waiver. Under the waiver, borrowers who have Federal Family Education Loans (FFEL), Perkins loans, or other federal student loans, can consolidate their loans into a Direct Consolidation Loan and receive PSLF credit for periods of repayment prior to consolidation. Periods of repayment on parent PLUS loans are not eligible under the limited PSLF waiver.
To take advantage of the waiver, you need to:
- If you don’t have one already, register for an FSA ID at StudentAid.gov/fsa-id/create-account.
- Have or get Direct Loans (including through loan consolidation). You can consolidate your loans if you need to at StudentAid.gov/consolidation.
- Submit a PSLF form to certify employment for PSLF that you want credit for through the waiver. You can generate a PSLF form at StudentAid.gov/pslf.
There’s no specific application for the waiver. Once borrowers have submitted PSLF forms and/or consolidated into the Direct Loan program, they will be automatically opted in and receive forgiveness if they qualify or an increased qualifying payment count.
Additional resources and guidance can be found at: https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service.
Questions regarding this Bulletin may be referred to the OCHCO Compensation and Classification Service at firstname.lastname@example.org.
Issued by: OCHCO/Compensation and Classification Service (055)