Public Service Loan Forgiveness ... Do You Qualify?
Do you work for the CDC? VA? Emory? A non-profit?
Do you still have federal student loan debt?
Have you previously tried getting your loans forgiven through the PSLF program and failed?
Good news!!
In October 2021, exciting (and temporary) changes were made to the U.S. Department of Education’s Public Service Student Loan Forgiveness Program, significantly increasing the number of federal student loans that qualify for forgiveness. There are some technical requirements that must be met: a particular type of loan, making a set number of payments (120), 10 years of work service and working at a qualifying institution.
What is the Public Service Loan Forgiveness Program?
According to the Department of Education website, “The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.”
What qualifications are needed for the federal student loan forgiveness program?
Your loans must be federal student loans … NOT private. ** You can determine if the loan is a federal loan if it begins with “Direct.”
You have to make 120 qualifying monthly payments
Work for a qualifying employer (a nonprofit or government institution)
Work full-time ( at least 30 hours a week)
10 years of work service with a qualifying employer
Check out this PSFL tool on the federal student aid website to help determine if you qualify.
What changes have been made to the PSLF?
Good news - if you did not qualify for PSLF before, you may qualify now! This program began in 2007, and although the ‘qualifying employment’ requirement has not changed, the program now allows all federal student loan payments to be counted toward the PSLF program. Previous disqualifying factors, such as an ineligible loan type or repayment plan, will no longer automatically make you ineligible.
Several clients have said, “I consolidated my loans years ago, so I don’t think I am eligible for forgiveness.” Even if you consolidated your loans when you began making your initial loan payments, these loans may still be eligible for forgiveness if they are federal student loans.
When should I get started?
This is a temporary expansion, so you will need to have your paperwork and applications submitted by October 31, 2022. The sooner you get started the better.
How to get started?
Creating an account at www.studentaid.gov is definitely your best first step. The account will be established within 3-5 days. Once you gain access to your account, your loans will be listed and you will be able to determine the number of payments made. In addition, there will be an eligible employer database that you can search.
How can we help?
This program has been changed significantly, and we understand there are a lot of qualifications and grey areas. Where you may not have qualified under the previous PSLF program, the temporary expansion could accept your application and see ALL of your debt wiped out! This is where we can help. If you are unsure of the process and/or if you qualify, we can work with you to identify next steps and walk you through the process.
Here’s what you’ll need:
Student loan documents - the latest statement or access to your federal student aid profile
Your latest income tax return
Name of your employer
Work service history
We can go through this information and process together. If you don’t qualify, we can identify why you don’t qualify and how you can go about qualifying in the future. We can help you consolidate your loans (if needed). And finally we can help you complete the application process.
If you have been putting this off, don’t worry, we are here to help. Set up a Zoom meeting (or consultation) here: