From Business Insider · Ayelet Sheffey · · 1m 20s
Public service loan forgiveness in limbo
Borrowers chasing student debt relief face payment delays, stricter rules, and court battles over eligibility.
In brief
Borrowers chasing student debt relief face payment delays, stricter rules, and court battles over eligibility. Public Service Loan Forgiveness borrowers face payment processing delays and stricter eligibility rules under Trump's overhaul, with court cases pending. Originally reported by Business Insider.
Payment counters stuck
Borrowers pursuing Public Service Loan Forgiveness, which forgives debt after ten years of qualifying payments, report that their payment counters have not updated to reflect payments reaching the forgiveness threshold.
The 120th payment problem
Some borrowers who made their one hundred twentieth payment over recent months are still waiting for Federal Student Aid to reflect that they qualify for relief, forcing them to choose between continuing payments or risking delinquency.
Stricter payment timing rules
Trump's repayment overhaul eliminated a fifteen-day grace period for PSLF payments. Now borrowers must pay exactly on the due date; even one day late means the payment does not count toward forgiveness progress.
Eligibility narrowed and blocked
The administration planned to implement a rule on July first that would have narrowed PSLF eligibility by excluding employers that do not meet its definition of public service. Courts blocked the rule following lawsuits filed by nonprofits.
Court case continues
The Education Department appealed the ruling at the end of August. The case will progress through the DC Circuit, with no immediate changes to PSLF while the court makes another determination.
What to remember
Public Service Loan Forgiveness borrowers face payment processing delays and stricter eligibility rules under Trump's overhaul, with court cases pending.
