The DC Department of Insurance, Securities and Banking (DISB) urges District borrowers to exercise caution as information spreads online regarding federal student loan forgiveness. While recent lawsuits have drawn attention, there are no current changes to the Public Service Loan Forgiveness (PSLF) program. Borrowers pursuing PSLF should continue certifying their qualifying employment as usual.
At the same time, a major settlement in Sweet v. McMahon (previously Sweet v. Cardona and Sweet v. DeVos) may impact certain borrowers who were defrauded or misled by their schools. Borrowers should not that this relief is not a broad forgiveness program.
No Changes to Public Service Loan Forgiveness (PSLF)
Eligible borrowers should pursue PSLF as there are no changes to the PSLF program at this time. To make progress towards forgiveness, borrowers should certify their non-profit and/or government employment at StudentAid.gov/pslf.
Borrowers should track their PSLF progress through their StudentAid.gov accounts and submit annual Employment Certification Forms. PSLF remains protected under federal law, and borrowers should ignore rumors claiming the program is replaced or eliminated.
Sweet v. McMahon Settlement: What Borrowers Should Know
The Sweet v. McMahon case resulted in the largest borrower defense settlement in U.S. history, providing targeted relief to borrowers who attended schools with documented misconduct. Eligibility for settlement relief depends on a timely submitted Borrower Defense to Repayment (BDR) application and which school the borrower attended. The settlement does not expand forgiveness to all student loan borrowers.
Borrowers should review information directly from reliable federal or legal sources to determine if they may qualify for debt relief. You can check the submission date of your Borrower Defense application on your Studentaid.gov account, and the Department of Education will notify eligible borrowers. If you believe you were misled by your school, you can learn more or submit a Borrower Defense application at StudentAid.gov.
Avoid Scams: Protect Yourself and Your Information
With recent legal news circulating, scammers are increasingly targeting borrowers. You never have to pay for student loan help. No company can “speed up,” “guarantee,” or “unlock” forgiveness. Misinformation about “automatic forgiveness” is a common red flag. If something sounds too good to be true, it likely is. Always verify claims using trusted sources like DISB’s Student Loan Ombudsman.
We Can Help
If you are a District resident with questions about your student loans, PSLF, income-driven repayment changes, or need help avoiding scams, contact the DISB Student Loan Ombudsman.
Email: [email protected]
Phone: 202.727.8000
Website: DISB.dc.gov/studentloanhelp