Some BU employees may be eligible for student loan forgiveness under a federal provision expiring after Halloween. Photo by Adele Bertschy

University News

Student Loan Forgiveness Expansion for Nonprofit Employees May Benefit Some BU Staff

University creates informational website, has scheduled September workshop

Some BU employees could be eligible to have certain federal student loans forgiven—but they may not know it.

The Public Service Loan Forgiveness (PSLF) program erases the balance on qualifying loans for full-time employees of nonprofits such as the University (government workers are also eligible). Under a waiver of normal rules that’s in effect until October 31, more borrowers can qualify for forgiveness, including some who may have been denied eligibility in the past.  

The University has arranged a webinar to explain the waiver on Monday, September 19, from 3 to 4:30 pm. The Massachusetts-based Institute of Student Loan Advisors will conduct the webinar; register here.

The PSLF program applies to people with Direct Loans, which are borrowed directly from the US Education Department for attendance at participating schools. Generally, to be eligible for forgiveness, the employee must have made 120 qualifying payments on their loans.

Other federal loans don’t qualify for PSLF forgiveness unless the borrower combines them into what’s known as a Direct Consolidation Loan. Typically, the Education Department website says, “Only qualifying payments that you make on the new Direct Consolidation Loan can be counted toward the 120 payments required for PSLF. Any payments you made on the loans before you consolidated them don’t count.”

But under the waiver, a consolidated loan created before October 31 might receive forgiveness credit for payments made prior to consolidation. The waiver also expands the types of federal loans eligible for forgiveness, as well as eligible repayment plans. 

“I think it’s safe to say that there are a number of employees who may have received the benefit of this [forgiveness] program, and now potentially many more,” says Amanda Bailey, University vice president for human resources. 

How many BU employees might be affected is unknowable, as “we do not know who has borrowed federal loans,” says Christine McGuire, vice president and associate provost for enrollment and student administration. “Some might have borrowed while at BU, but many others would have borrowed at other schools.”

Following are some frequently asked questions and answers about the forgiveness program, compiled by the University:

I completed my application and need to verify my employment at BU. What do I do?

Please email your completed application to the Human Resources Service Center or contact an HR Service Center representative at 617-353-2380. 

How do I know how many qualifying payments I have made towards the 120 payments required for forgiveness?

Once you have applied and are accepted to the PSLF program, your servicer will review your payments and determine how many qualifying payments you have made. Any questions you have about their payment tally can be addressed directly to your servicer.

Under the PSLF limited waiver, do any payments I made towards my loans during a deferment period count towards the 120 payments required for forgiveness?

Some types of deferment periods are included in the PSLF limited waiver, but not all. You can find answers to many questions regarding deferment here. You can also contact your servicer directly with questions about your specific circumstances.