LANSING (WWJ) -- Student loans are one of the most common financial issues Michigan residents face. But Gov. Gretchen Whitmer says relief may be available for up to 148,000 public sector workers in the state.
The Public Service Loan Forgiveness (PSLF) program provides student loan relief to federal, state, local or tribal government employees or qualifying non-profit workers. Guidelines include working in the public sector for 10 years, making 120 full repayments, make all repayments on-time and submitting all required paperwork.
The PSLF program has historically been difficult to access, with only 2.1% of eligible applicants approved to have their loans forgiven.
Reasons for past rejections of otherwise eligible applicants include: Having a non-Direct loan Not being enrolled in an income driven repayment plan Missing a repayment Make a partial repayment The U.S. Department of Education has now overhauled the PSLF program and introduced the PSLF waiver. The waiver allows previously rejected applicants to reapply for loan forgiveness with the new easements through the end of October.
Whitmer and the Office of the State Employer (OSE) are making every effort to get the word out about the new PSLF waiver.
“I’m grateful to the countless, dedicated public servants across Michigan that spend their days making our state a better place to live. Whether you are a service member, firefighter, health professional, teacher, social worker, librarian - the list goes on - thank you for your service,” said Whitmer, in a news release Thursday.
“We’re working hand-in-hand with employees to help them take full advantage of the Public Service Loan Forgiveness program,” said Liza Estlund Olson, director of the Office of the State Employer. “By highlighting recent changes to this federal program, we urge borrowers to take a second look to see if they qualify for student loan relief and encourage more Michiganders to join the public sector workforce.”
According to the governor's office, the PSLF waiver has already allowed a total of $358 million in federal student loans to be forgiven for more than 6,000 Michiganders.
To apply for the PSLF waiver, borrowers should:
- Visit studentaid.gov/pslf/employer-search/search-tool to verify their employer qualifies for PSLF
- Submit a certified copy of the Public Service Loan Forgiveness Employment Certification form to the U.S. Department of Education before October 31, 2022.
If borrowers have questions regarding their individual situation, they can visit studentaid.gov/pslf/ or call FedLoan Servicing at 1-855-265-4038.
The PSLF: Champions Toolkit is available for employers and professional associations to help amplify the PSLF waiver opportunity and connect borrowers to resources. It is available for download here.
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