Mapping Your Future: Servicing changes for borrowers seeking Public Service Loan Forgiveness


Servicing changes for borrowers seeking Public Service Loan Forgiveness

By Catherine Mueller

April 03, 2024

Borrowers on track to receive Public Service Loan Forgiveness will soon see some changes in how their loans are serviced.

The U.S. Department of Education (ED) is updating its systems and contact centers to better manage the Public Service Loan Forgiveness (PSLF) process to improve the overall borrower experience.

For borrowers already working toward PSLF or are interested in PSLF, they will soon work with the Department of Education directly. Federal student loans will remain with the existing loan servicer.

As the transition from the PSLF Program from its current servicer, MOHELA, to ED via this spring, processing for all PSLF forms will temporarily be paused beginning in May 2024 through July 2024.

The processing pause will impact the following activities:

  • PSLF form processing—During this period, borrowers can still submit PSLF forms, but they will not be processed by ED until after the pause ends.
  • Payment count updates—Borrower payment counts won't be updated during the processing pause, but all payments will be reflected on accounts when the pause ends.
  • Forgiveness of loans—Borrowers who reach loan forgiveness during the processing pause will either be refunded after the pause for any payments made beyond the 120 qualifying payments or will see these payments applied to their other outstanding federal student loans.

After the pause ends, borrowers will be able to log in to their account to find information about all their eligible and qualifying payments for PSLF.