Loan Consolidation Deadline for Physician Public Service Loan Forgiveness Extended Through 2023

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The U.S. Department of Education has updated guidance for its public service loan forgiveness (PSLF) program to clarify that eligible borrowers should consolidate their loans into direct government loans by the end of 2023. The previously stated deadline was May 1, 2023.  

Eligible borrowers with commercially managed Federal Family Education Loan, Perkins, or Health Education Assistance Loan Program loans should apply for a direct consolidation loan by the end of 2023 to get the full benefits of the one-time income-driven repayment account adjustment. 

In December 2022, the PSLF regulations were updated with a fix sought by CHA — that all eligible California physicians can participate in the program, despite the state’s prohibition on physician employment. Applications under the new rules will be accepted beginning July 1, and are retroactive for the last 10 years of work in public and private nonprofit hospitals and clinics. Physicians must consolidate into direct government loans to receive credit toward forgiveness for time already worked and payments made under loans prior to consolidation.  

More information on loan consolidation requirements is available from the Department of Education. CHA continues to work with the California Medical Association to seek additional guidance on the updated PSLF requirements for physicians in California.