What Do I Need to Know About the Public Service Loan Forgiveness Program?

There’s more news on the Student Loan front that we want to focus on today. This information is regarding the Public Service Loan Forgiveness Program (PSLF).

PSLF is different from the one-time student loan debt relief of up to $20,000. PSLF is a program for people who work in public service in federal, state, tribal, or local government, or for a non-profit organization. Military service, as well as time, served as a Peace Corps or AmeriCorps volunteer are also included in federal service.

For those individuals, if you:

a) work full time,

b) have Direct Loans, or consolidate other federal loans INTO a Direct Loan,

c) repay under an income-driven repayment plan, and

d) make 120 qualifying payments, then you can apply for forgiveness for the balance of your remaining Direct Loans.

This isn’t something that happens overnight, the process will take at least 10 years. A helpful tip is to certify your employment each year, or whenever you change jobs. Someone in your Human Resources Department will be able to assist you with this certification.

Sounds amazing, right? But did you know, that 99% of all applications for Public Service Loan Forgiveness are rejected?

In an effort to change this, the federal government has come up with two different ways to improve the program. The first is called Temporary Expanded Public Service Loan Forgiveness (TEPSLF). This is an effort to help people who were enrolled in the wrong type of repayment plan. As the name suggests, this Expansion is temporary and will end once the funds set aside have run out.

If you have already applied for PSLF, the Department of Education will automatically review your loan to see if you qualify under TEPSLF.

Next is the Limited Waiver, which is geared at helping people with the wrong repayment plan, OR the wrong loan type. Or both! This waiver will expire on October 31, 2022, so let’s review the steps you need to take to see if you qualify.

First, determine what type of loan(s) you have. This site will provide you with a breakdown of your loan types. Once you know your loan types, you can take the appropriate actions.

1. If you have Federal Family Education Loans (FFEL), or Federal Perkins Loans:
   1. You will need to determine if your employer is eligible. You can look here to see if your employer qualifies.
   2. If your employer is eligible, or if you believe your employer is eligible, then you must submit your loans into a Direct Consolidation Loan. You will need to consolidate your loans before October 31, 2022, otherwise, you will not be eligible for the waiver.
   3. Submit a complete PSLF Form before October 31, 2022. This PSLF Help Tool is designed to do just that: help!
      
2. If you have a Direct Loan, but never certified your employment:

   1. 1. You will need to determine if your employer is eligible. You can look here to see if your employer qualifies.

      2. If your employer is eligible, or if you believe your employer is eligible, then you must submit a PSLF Form before October 31, 2022. This PSLF Help Tool is designed to do just that: help!

3. If you have a Direct Loan and have submitted an Employer Certification Form (ECF) or PSLF Form:
   1. If you have not had all your employment certified, OR if you submitted a PSLF Form and were denied, you will need to submit a new PSLF Form.

• didn’t have the right kind of loan,
• weren’t in the right repayment plan,
• made the payment late, or
• did not pay the full amount due, then just wait. You may automatically receive credit for prior periods of repayment.