Back / Student Loan Forgiveness Processing is Suspended starting May 1, 2024

Student Loan Forgiveness Processing is Suspended starting May 1, 2024

Melanie Meths Abangan|PSLF|April 10, 2024
Student Loan Forgiveness Processing is Suspended starting May 1, 2024

In recent developments, the Biden administration has announced significant changes in the student loan forgiveness landscape, causing ripples of anticipation and adjustment among borrowers. One key announcement is the suspension of student loan forgiveness processing under a crucial program. Let's delve into what this entails and how borrowers can navigate through this transition period.

The Shift: What's Happening?

The program in focus is the Public Service Loan Forgiveness (PSLF) program, offering relief for borrowers engaged in nonprofit or public-sector roles. Under the Biden administration's reforms, significant changes have been initiated, aimed at improving the efficiency and accessibility of PSLF. These reforms have already led to a substantial increase in approvals for loan forgiveness, contrasting starkly with the previous high rejection rates.

In a pivotal move, the Department of Education is taking over the reins of PSLF operations from MOHELA, one of its contracted loan servicers. This transition is a response to concerns raised by advocacy groups regarding the adequacy of MOHELA's servicing and billing practices. The Education Department's decision to bring PSLF under its direct management reflects a commitment to enhance the program's effectiveness and address existing challenges comprehensively.

What Borrowers Need to Know

1. Suspension Period:

The suspension of student loan forgiveness processing for PSLF is scheduled for a three-month period, from May through July of this year. During this time, borrowers can expect a temporary halt in the processing of forgiveness applications and related services.

2. Impact on Borrowers:

Borrowers relying on MOHELA for PSLF-related services should prepare for a transition. Access to PSLF progress, certified employment details, and payment counts via MOHELA's borrower portal will cease from May 1, 2024. However, borrowers can continue to submit their employment certification forms online using the PSLF Help Tool, albeit with processing paused until July.

3. Servicer Changes:

With the transition to Education Department administration, borrowers may experience changes in loan servicers. MOHELA may transfer accounts to their new servicing platform or another servicer post-May 1. From July onwards, the Education Department will fully manage the PSLF Program, ensuring continuity in services while enhancing operational efficiency.

4. Future Access and Updates:

Once the transition is completed in July, borrowers can expect improved accessibility and streamlined services via This includes access to PSLF payment counts, self-service tools, and application tracking. Any pending updates on PSLF payment counts should be processed post-transition completion, ensuring borrowers remain informed and supported throughout the process.

Additional Changes Ahead

The transitionary phase doesn't solely affect the PSLF program. TEACH Grants, catering to certain teachers, will also undergo processing suspension from May 1, 2024. Furthermore, later in the fall, the Total and Permanent Disability (TPD) discharge program will witness a similar transition, marking a comprehensive overhaul of student loan forgiveness administration.

In essence, while the temporary suspension may present challenges, the overarching goal is to fortify the student loan forgiveness landscape, ensuring fairness, accessibility, and efficiency for borrowers. As the Biden administration steers these changes, borrowers are encouraged to stay informed, proactive, and patient during this transformative period in student loan forgiveness processing. Stay tuned for updates and guidance as we navigate these shifts together.

If you need personalized assistance or have questions about your specific situation, our experts at LoanSense are here to help. Visit our website at to learn more about our services and get in touch. You may also check out our YouTube Channel for more informative discussions and topics related to student loan debt.

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