The U.S. Department of Education is asking municipal leaders to remind their employees that they may be eligible for expanded federal student loan forgiveness if they apply by Oct. 31.

Last October, the department announced a temporary waiver to the Public Service Loan Forgiveness program that allows borrowers, for a limited time, to receive credit for past payments on federal education loans that would not otherwise qualify for PSLF.

The PSLF forgives the remaining balance on Direct Loans after qualifying employees — those who work full-time for a government agency or nonprofit — have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.

For a limited time, however, the program’s qualifying repayment plan requirement has been waived, and borrowers may receive credit for past periods of repayment that typically would not qualify for PSLF.

To get credit for these payments, borrowers must consolidate their federal student loans into a Direct Loan and submit a PSLF form through the PSLF Help Tool by Oct. 31.

• Employer toolkit at
• Eligibility tool for employees at
National League of Cities webinar for local leaders
• Explanatory article by Richard Cordray, chief operating officer at Federal Student Aid, on