What to Know About Changes to Public Servant Loan Forgiveness

  • October 19, 2021
  • By: GreenPath Financial Wellness

Many Borrowers with Student Debt

Many borrowers with student debt were relieved to learn about changes to the public service loan forgiveness program, announced in October 2021.

Because of past confusion and complexity about eligibility, recently the Department of Education announced an overhaul of the Public Service Loan Forgiveness Program.

When first mandated in 2007, the intention of the public servant loan forgiveness program was to allow a variety of government and nonprofit workers with federal student loan debt to have remaining balances forgiven, tax-free.

Before these recent changes, the law was looked upon as overly complex and restrictive, and essentially reduced the chance for millions of federal, state and municipal workers; educators; charity workers; nonprofit hospital workers and others to reduce student debt balances.

The recent changes clear out some of the confusion and previous limits with eligibility retarding type of loan, repayment options, and past loan payment history.

According the full announcement, the federal agency estimates the revisions will bring more than 550,000 people closer to debt cancellation, including 22,000 who will be immediately eligible.

The regulators also expect that another 27,000 borrowers could potentially qualify for an additional $2.82 billion in forgiveness if they certify additional periods of employment.

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Who is Eligible?

When considering changes to the public servant loan forgiveness program, it is helpful to understand eligibility.

The revisions might impact teachers, nurses, first responders, service members, those working in nonprofit hospitals and other nonprofit and public service workers.

Each person’s financial situation is unique – the new regulations will affect each borrower differently depending on their own qualifications.

To explore whether you can take advantage of the changes to the public servant loan forgiveness program, see the following online resource: StudentAid.gov/PSLFWaiver.

Your Full Financial Picture

The changes to the public servant loan forgiveness program is good news for many.

Recent research by Pew Charitable Trusts shows that 7 in 10 Americans said that while taking on student loans is a reasonable choice given the benefits of a college degree, 89 percent expressed concern about their ability to repay those debts.

The revised public servant loan forgiveness program goes a long way in reducing those concerns.

Trusted guidance from GreenPath counselors is a phone call away, helping you make sense of not only your student debt but also your full financial picture. Counseling sessions are free, confidential and proven to reduce uncertainty around finances.


GreenPath Financial Wellness is a trusted national nonprofit with more than 60-years. Start a conversation with an expert.

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Greenpath Financial Wellness

GreenPath Financial Wellness is a trusted national nonprofit with more than 60-years of helping people build financial health and resiliency. Our NFCC-certified counselors give you options to manage credit card debt, student loans and homeownership.

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