Have you worked at a not-for-profit or governmental organization for at least 10 years of your career? Do you still have student loans? Do you know someone else who does? You may be missing out on an opportunity to have your student loans completely forgiven under the Public Service Loan Forgiveness (PSLF) Program.
Last year, the U.S. Department of Education announced some major changes to the rules and qualifications around the Public Service Loan Forgiveness Program. Now, the deadline to take advantage of those changes is quickly approaching. The Limited PSLF Waiver is set to end on October 31, 2022, and there has been no mention of extending this deadline (unlike the extension of the COVID-19 administrative forbearance).
The PSLF waiver has allowed borrowers to receive credit for past payments made on loans that would otherwise not qualify for PSLF. This means that borrowers who may not have ever considered PSLF as an option should now re-examine their student loan strategy to see if they may qualify.
This blog is designed to help you understand if the limited PSLF waiver applies to you.
First, let’s take a look at what has not changed:
In this special episode of the Prosperous Doc® Podcast, Will Koster, CFP®, walks you through student loans and recent updates to the Public Service Loan Forgiveness program.
He helps make sense of how the recent changes might apply to you, this is an episode you don’t want to miss if you have outstanding student loans.
If you have questions about your loans, your student loan servicer is the best place to go for information.
Keep in mind that the servicer tasked with administering the PSLF program is now MOHELA. They have outlined what to expect as your paperwork is being processed.
FederalStudentAid has helpful resources such as the PSLF Help Tool and is also the place to go to complete the Direct Consolidation Application.
It is clear that the student loan world is changing rapidly. The Spaugh Dameron Tenny team will continue to monitor the announcements from the Department of Education and help you understand how the changes may affect your situation. Please reach out to your trusted advisor with any questions.
Over the past several months, it has become increasingly clear that this opportunity has been underutilized. Many doctors and dentists do not know that their loans may be eligible for full forgiveness. Please take the time to share the good news with your colleagues.
Updated as of October 11, 2022
Will Koster is a financial planner with Spaugh Dameron Tenny. The experience of losing his father as a teenager helped Will find his calling in financial planning. He has a passion for working with dentists and physicians, helping them navigate their unique wealth creation journeys. In addition, Will has become the in-house expert on student loans after completing the Certified Student Loan Professional® training.
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