Federal courts have blocked certain eligibility restrictions for the PSLF program, but new rules still pose challenges for borrowers. A key change is that the new Tiered Standard Plan does not qualify for PSLF, meaning that borrowers enrolled in this plan will not accumulate the necessary payments for loan forgiveness.
Instead, new borrowers must choose the Repayment Assistance Plan (RAP), which ties payments to income. Additionally, Parent PLUS borrowers are now excluded from income-driven repayment options, limiting their ability to benefit from PSLF.
However, a recent court ruling has clarified that employers cannot disqualify employees from PSLF based on vague criteria, ensuring that many borrowers can still qualify based on their employment. Borrowers are advised to regularly check their eligibility and repayment options to maximize their benefits under the PSLF program