July 11, 2023

Public Service Loan Forgiveness Update

Our endorsed partner Cambridge Credit Counseling offers a student loan forgiveness update after the Supreme Court's recent decision.

The Supreme Court’s decision on 6/30/2023 to deny the Biden Administration’s proposed $10k/$20k lump-sum loan forgiveness has absolutely no bearing on your eligibility for the Public Service Loan Forgiveness (PSLF) program -- nor does it in any way impact the Income Drive Repayment (IDR) payment adjustment opportunity that ends on 12/31/2023.

The PSLF program is available to every federal student loan borrower who works for a qualifying employer, including public schools, non-profit private schools, cities, towns, state government, 501(c)(3) organizations, etc. After you have made 120 payments on direct loans though an eligible repayment plan, your entire remaining federal student loan balance can be forgiven.

The IDR payment adjustment opportunity that ends on 12/31/2023 allows federal loan holders to receive retroactive credit for payments made on ineligible loans or through an ineligible repayment plan.