Information from NASW coalition partner, the National Consumer Law Center
Starting May 1, 2024 the Public Service Loan Forgiveness (PSLF) repayment program will be transitioning servicing from MOHELA to the Department of Education’s StudentAid.gov platform. During this transition from May 1, 2024, through July 31, 2024, all processing of forms and other PSLF information will be paused.
During the pause:
- If you need to recertify your employment, or if you reach 120 qualifying payments, you can still submit your Employment Certification Forms (ECF) but they won't be processed until after the pause is over.
- Borrowers won't see their number of payments changed. They will still count towards PSLF qualifying payments, and the number of payments will be updated after the pause is over.
- Borrowers will not be able to have their questions about their PSLF progress answered during the transition.
- Borrowers will also lose all access to their PSLF data. This includes PSLF tracking information accessible through their online MOHELA account such as qualifying PSLF payment counts and approved employment periods. Once the transition to StudentAid.gov is completed in July, borrowers will regain access to their PSLF data through that platform.
What can borrowers do now?
- Borrowers should download their PSLF records, including payment count and tracking information, by April 30, 2024, to mitigate disruptions during the transition.
- Borrowers should make sure their contact information is up to date with their loan servicers and the Department of Education on StudentAid.gov.
What can borrowers anticipate?
- This transition is not a payment pause. Borrowers should continue making their payments as required during the transition period. Unless a borrower requests a forbearance while their forgiveness application is being processed, they will still be required to make payments until their application is reviewed and approved.
- Your loan servicer could change as a result of the PSLF transition. With this new transition to StudentAid.gov, all loan servicers will be able to service PSLF accounts. Borrowers with MOHELA could experience service changes.
- There may be significant PSLF processing delays after the pause ends.
Should borrowers submit their PSLF Employment Certification Forms (ECF) during the processing pause?
It depends. If borrowers reach 120 qualifying PSLF payments during the pause and need to submit their ECF to apply for forgiveness, they can still do so, but it is best to do so using the Department’s online PSLF Help Tool to reduce the risk of paperwork getting lost in the transition. For borrowers who are not close to forgiveness yet, it may be best to wait to submit the ECF until the pause is over.
Additional resources on the PSLF pause:
To find out more information on PSLF eligibility follow the resources below:
- Borrowers employed by a government or not-for-profit organization may be eligible for the PSLF Program. The PSLF Program forgives the remaining balance on Direct Loans. Eligibility for forgiveness through PSLF requires borrowers to make 120 payments under an approved payment program to qualify.
- Find out what type of loan(s) you have.
- Learn more about what is considered a qualifying payment for PSLF.
All borrowers can find more information on StudentAid.gov. Borrowers who don’t qualify for PSLF can also consider applying for Income Drive Repayment (IDR) plans, such as the Saving on a Valuable Education (SAVE) plan.