What borrowers need to know about the new Public Service Loan Forgiveness rules
Here's what student loan borrowers need to know about who is eligible and what steps they may need to take to receive debt relief.
Here's who was previously eligibleThe program was created in 2007 and provides an incentive for workers to remain in lower-paying, public service jobs despite their student debt.
After borrowers make 120 monthly payments, their remaining federal student debt is wiped away.
Those with Federal Family Education Loans, which were made by private lenders but backed by the government, did not qualify.
Here's who gained eligibilityDue to the temporary waiver, it no longer matters what kind of federal student loan a borrower has or what payment plan he or she is enrolled in.
All payments will be eligible for the Public Service Loan Forgiveness program if the borrower was working full time for a qualifying employer.
The Department of Education will review past payments to count those made on Federal Family Education Loans.
These borrowers should look out for an email from Federal Student Aid in the coming weeks regarding how many additional payments could qualify.
FedLoan, the servicer responsible for handling PSLF borrowers, was often criticized for making errors.
They are eliminating all those other problems," said Betsy Mayotte, president and founder of The Institute of Student Loan Advisors.
The nonprofit provides free advice to student loan borrowers and has tips about the new PSLF changes here.
These people remain ineligibleParents who borrowed what's known as a PLUS loan from the federal government do not gain any benefit from the Public Service Loan Forgiveness waiver.