Is Public Service Loan Forgiveness (PSLF) Retroactive?

Normally, you could only get retroactive credit for the Public Service Loan Forgiveness (PSLF) program if you worked in public service since October 1, 2007 and took out eligible student loans after 2007. This process involves hunting down former supervisors from your eligible jobs to sign off on an Employment Certification for Public Service Loan Forgiveness form.

However, the U.S. Department of Education announced on October 6, 2021 that they are changing PSLF rules. In light of the pandemic, the department is offering PSLF waivers. These waivers allow you to retroactively count certain loans toward your qualifying payments that usually do not qualify. Here is a closer look into this development.

Is PSLF Retroactive?

You may get retroactive credit for PSLF if you meet the program's requirements since the program’s launch on October 1, 2007. Generally, these qualifying requirements include:

Working Eligible Jobs: PSLF requires that you worked full time in a public service job after 2007. You will need to file a form certifying that you have worked in an eligible organization.
Making Qualifying Payments: You must make 120 qualifying payments on your student loan bills. These payments must be full and on time to qualify.
Paying Through Specific Plans: You must be making your federal student loan payments through an income-driven repayment plan.
Having Direct Loans: Federal Direct Loans include subsidized, unsubsidized, PLUS, and consolidation loans.

With the new waivers in effect, you can temporarily count non-Direct federal loans toward your qualifying payments. Such loans include:

Federal Family Education Loans (FFEL)
Federal Perkins Loans

In addition, any payments you have made on your Direct Loans may count toward the 120 qualifying payments you need. Regardless of loan type, repayment plan, or payments made, you are potentially closer to getting student loan forgiveness through these waivers.

In other words, partial payments, late payments, or those you made in a non-income-driven repayment plan will count towards your required 120, provided that you consolidate them into Direct Loans. Note that Parent PLUS loans remain ineligible despite this development.

How Do I Get Retroactive Credit?

You can take advantage of the temporary waiver by accomplishing the following tasks:

Consolidate your non-Direct loans into a single policy.
Prove that you have worked in an eligible job.
Apply for PSLF.

You must complete these actions by October 31, 2022. The U.S. set this date as the end of the national state of emergency for the COVID-19 pandemic. Although the national state of emergency may extend, there is no telling whether the Department of Education will extend this grace period. Once the waiver’s time has passed, the old PSLF rules will return.

Conclusion

So, is public service loan forgiveness retroactive? Yes, you can get retroactive credit for your payments on federal Direct Loans, as long as you have worked in a qualifying public service entity full-time after 2007. You must submit forms proving that you worked in those organizations, which involves getting supervisors (former or current) to sign.

Currently, you can get retroactive credit for other loans besides federal Direct Loans. Be sure to take advantage of this temporary change that the Department of Education granted while it lasts.

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.