OPM clarifies how agencies can help federal government apply for waiver of public service loan forgiveness before October 31 deadline

With a deadline fast approaching apply for a time-limited utility loan repayment waiverthe Office of Personnel Management said agencies should help federal employees with their applications.

If they have the documentation available, agencies can certify a current employee’s full work history, including that person’s time at other agencies.

“The federal employee must submit a separate PSLF form for each federal agency and period of employment for which they are seeking certification and the agency official must certify each form as applicable,” the OPM wrote in a statement. communicated. Memo of October 24.

Employment certification forms are just one of the requirements to apply for the PSLF temporary waiver, which expires on October 31.

The time-limited waiver is an attempt to fix some long-standing issues qualifying issues for the PSLF program, which forgives student loans to those who have served at least 10 years in the federal government. The program also forgives debt for those who have worked at least as long for a nonprofit organization, the military, or state, tribal, or local government.

The Ministry of Education announced the waiver last October in response to the COVID-19 pandemic, temporarily expanding the PSLF program to allow borrowers to obtain credit for past loan repayments that may not have not counted otherwise. Some of the waiver changes include eligible borrowers who have not served 10 consecutive years of public service, as well as partial loan forgiveness for those who have served less than 10 years. Borrowers who have been denied the PSLF program can also reapply using the temporary waiver.

As the waiver deadline approaches, the OPM has recommended that agencies also share an internal point of contact who can sign employment certification forms, to prove that a person was employed by the federal government during the period she is applying. People who no longer work for the federal government, but who have previous public service experience, should contact the National Center for Personnel Records to receive employment certification, the OPM said. But those who have very recently left federal service can still obtain their certificate of employment directly from an agency, if the agency still has the required documentation.

Along with the temporary waiver, the Education Department has also proposed several permanent changes to the PSLF program in July, to resolve issues related to limited program eligibility. The ministry recommended expanding the types of payments allowed to include partial, lump sum and late payments. Another proposal recommended that certain deferments, such as Peace Corps and military service, still count toward the program. The proposed regulations would build on parts of the limited exemption.

“However, any waiver provisions limited to the PSLF are not included in the proposed settlement due to legal restrictions. Borrowers seeking to account for their payments on Federal Family Education Loans under forgiveness should to apply for PSLF by October 31, 2022,” the department wrote.

The proposed regulations are expected to come into force on July 1, 2023, leaving a noticeable gap between late October and next summer. During this time, the PSLF program will return to its original settings.

In response to the gap in expanding eligibility, a group of senators urged the Biden administration to extend the temporary waiver July 1 next year, when the new permanent rules for the PSLF program will come into effect.

“To date, the waiver has been largely successful in reducing the barriers preventing borrowers from accessing PSLF relief, as the waiver represents nearly all (91%) borrowers who have received forgiveness through the PSLF program so far. ‘as of July 31, 2022,’ a group of lawmakers wrote in a October 3 letter to Education Secretary Miguel Cardona.

More than 189,000 public servants have had their student loans forgiven under the PSLF program, and one million people have received an additional year of PSLF credit, on average, since the department announced the waiver last year. , the lawmakers added.

But as of now, the current expiry date of the temporary waiver remains the same.

“These changes make it easier than ever officials to take advantage of loan forgiveness, but you must apply by October 31 to see these benefits,” OPM Director Kiran Ahuja said in a video message in August. “Even if you have already been denied, you could qualify now.”