April 15, 2021

Does My Employer Qualify for Public Service Student Loan Forgiveness?

Forgiveness

How did you pay for your university education? If you are like the millions of other Americans, chances are your education was financed by a federally-approved loan. Of course, a loan is a loan, and you are still responsible for repaying it.

Or are you? After all, the pandemic has caused the Federal Government to reconsider its traditional stance on student loans. Student loan forgiveness is an option for you right now. And it is one you ought to take advantage of.

Like student loan forbearance, public service student loan forgiveness requires certain things to happen. In particular, your employer needs to be considered public service.

By meeting this requirement, among others, you can find yourself on the receiving end of tax-free, student loan forgiveness (principal and interest). Read on to see if your employer renders you eligible for student loan forgiveness.

Qualifying Employers

Before going any further, let’s be clear on one thing: It is not a certain job that makes you eligible for student loan forgiveness. Whether you may be eligible or not depends more on the nature of your employer’s services. Your eligibility also rests on how the IRS classifies your employer.

Without getting into the weeds, your employer can render you eligible by being in one of the following classifications.

Government Agency

One student loan–forgiving qualifying employer is any government agency.

You do not need to be working for an agency at the federal level either. The provisions for qualifying employers allow any agency at all tiers to participate as a student loan forgiveness employer.

You can be eligible by working in an agency at the following levels of government:

  • Federal
  • State
  • Local
  • Tribal

Nonprofit

The IRS has classifications for nonprofit groups and organizations. Under its tax codes, nonprofits that qualify as student loan forgiveness eligible employers need to be 501c organizations.

These organizations are generally tax-exempt. In other words, they are not required to pay taxes since the money they receive is not income. The tax exemption is a way to incentivize donors. How does this work? It works by guaranteeing tax breaks for donations.

So, if you work for a nonprofit organization that makes money solely through donations, you’re in the clear!

Groups Deemed Too Essential to the Country’s Education, Safety, Public Health, and Defense

This is a pretty broad group. You can use the term “public service” for classification.

Employers that are essential to the country are qualifying employers. They can include:

  • The Peace Corps and AmeriCorps
  • The military
  • Public health
  • Public education
  • Law enforcement
  • Fire protection

Also included are lawyers within the public sector. Under this group are district attorneys and prosecutors. Discover other jobs that qualify for PSLF here.

A Contractor or Company That Works for Any of the Above

Third parties that act as contractors for the above groups can render you eligible for Public Service Loan Forgiveness too.

The Steps for PSLF Paperwork

See your employer in any of these groups? Good.

Now, let’s talk about what you need to do to qualify.

Step #1: Fill Out the Employment Certification Form

The form is six pages. Luckily, you only need to fill out two out of the six.

There is a part of the form your employer needs to fill out as well.

This form aims to verify that you do indeed work for a PSLF qualifying employer.

Step #3: Apply!

If you've already made 120 on-time payments to your Federal Direct Loans, you can go ahead and apply. Depending on if you were also enrolled in an income-driven repayment plan while you made your 120 payments, you'll need to apply for either the PSLF or TEPSLF program.

You can either fax or mail your forms and application, or upload them to Fedloan Serciving (the servicer that processes PSLF and TEPSLF forms and applications).

Thousands of potential beneficiaries have been turned away due to late paperwork.

Fax number: 717-720-1628

Fedloan website: https://myfedloan.org/

Mailing address:

U.S. Department of Education

FedLoan Servicing

P.O. Box 69184

Harrisburg, PA 17106-9184

We'll do the work for you!

Chipper specializes in student loan forgiveness! As long as you work for a qualifying employer, we'll do the rest for you, making sure you meet the requirements in order to apply. Without help, you'll get the student loan forgiveness you deserve.

Our experts have a 100% success rate and are eager to get you closer to financial freedom! The best part, Chipper offers “Chip-In What You Can” pricing. Basically, you as the student loan borrower have the option to choose how much to pay for our expert guidance, you can set any price over $1.

With our help, you can breathe easier knowing that your student loan repayment and debt can be one less thing to worry about!

Use Chipper for Lower Payments

Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.

Use Chipper for The Best Path to Forgiveness

Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.

Use Chipper for Round-Ups

Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.

Use Chipper for Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.

Use Chipper for Teacher Loan Forgiveness (TLF)

The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.

See How Much You Can Save with Round-Ups

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