Fall 2021 (Special Edition)

Important and Urgent Update for Clergy with Federal Loans

I recently learned of several changes for those of you with federal educational loans that became effective July 1, 2021. I took the time to research and talk with experts who have knowledge in this complex and complicated area. I felt it was important to provide you with this information in a more concise and consolidated manner. The key changes are:

• Eligibility for the Public Service Forgiveness Loan
• Change in the forbearance period when repayments will begin (not Sept. 30!)
• Update on recertification for new payment amounts for those participating in an income-driven payment program 

If you are a clergy person and have educational debt with the federal government, you must read this document!

I know that the Public Service Forgiveness Loan program has not historically forgiven many loans. However, I am hearing the government is anticipating an increase in applications and thus, an intention to improve the capacity to process applications. I am encouraged by the possible shift and improvement in approved applications. Do not let the past low approval rate discourage you from applying; you have a chance to have your loan forgiven in possibly ten years (or 120 qualifying payments). It is imperative you complete the application accurately and completely to avoid being rejected despite your likely eligibility!

In addition to the informative document I have provided, listen to Dakotas Conference Treasurer Jeff Pospisil’s video to learn his thoughts and perspective.

Diane Owen
Area Program Director
Economic Challenges Facing Pastoral Leaders
diane.owen@dkmnareaumc.org / Cell: 507-244-0311