PSLF Update — August 2020
Over $200,000,000 in student loan forgiveness.
Here is the latest update on the Public Service Loan Forgiveness Program. Since there is a lag in collecting and processing the data, the report released in August 2020 only has data through June 2020.
(Note: For explanations of the data and corresponding calculations, please see the original article about parsing the PSLF reports.)
Approval Rate
At 12.4%, June wasn’t quite the blockbuster month for approval rates as May was with it’s 15.5%, but it was still far better than the single digits from earlier in the year. While the approval rates will bounce around for a bit, my estimate is that the trajectory will only go up from here.
The first cohort of applicants are slowly being replaced, with a better support system in place to successfully navigate the program.
And it’s not just the rates that are going up. The total number of borrowers receiving forgiveness more than doubled, from 214 in May to 431 in June.
Amazing!
Forgiveness Amount
PSLF is making massive progress in this area. The total amount forgiven just broke the $200,000,000 mark this month, with the average balance forgiven this month clocking in at almost $86,000.
Can you imagine the collective relief of those 431 borrowers? They basically had half of a mortgage forgiven (well, if you live in the MidWest, that is).
Regardless, this program is picking up steam, and I am excited to see where it will be in a year.
PSLF is the student loan forgiveness program that works. Sure, it had some trouble in the past, which I address in previous articles (see below), but those issues have been pretty much worked out.
Also, if you are banking on the Democrats winning the presidential election this year and passing massive student loan forgiveness program, please read another previous article about why that proposal is D.O.A.
PSLF is the proverbial bird in the hand, so I encourage anyone who is thinking about pursuing a qualifying career to not outright dismiss this already working forgiveness program.
Related Articles/Resources
- PSLF Update — July 2020
- The Basics of Public Service Loan Forgiveness
- The Truth About PSLF
- Is PLSF Right for Me?
- In Defense of Public Service Loan Forgiveness
- How to Hack the Secretly Successful PSLF Program
- How I Still Have $135,000 in Student Loan Debt (Even After 21 Years)
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This article is for informational purposes only and should not be considered Financial or Legal Advice. Not all information may be accurate. Consult a financial professional before making any major financial decisions.