August 11, 2021

Public Service Loan Forgiveness: What You Need to Know Before The New Year


The Public Service Loan Forgiveness (PSLF) is a federal student debt relief program that allows people to work in qualifying public service positions instead of higher-paying jobs to pay off their student loan debts.

Under the PSLF program, you are eligible to have any of your remaining Federal Direct Loans forgiven after making 120 qualifying loan payments over ten years. These payments are made under a repayment plan while working full-time for a qualifying employer.

When the COVID-19 pandemic hit the U.S. last March 2020, the federal government gave borrowers a break on student loan payments. The Department of Education scheduled the payment pause for student loan borrowers to end on February 1, 2022

Here’s what you need to know about the PSLF’s January 31st deadline.

The PSLF Program During the COVID-19 Pandemic

The Coronavirus Aid, Relief, and Economic Security (CARES) Act included a provision that suspends the requirement for monthly PSLF payments and gives full credit for those months.

If you are a student loan borrower seeking PSLF, you do not need to make payments until the extended automatic forbearance expires on February 1st. You will still earn credit for PSLF purposes as long as you work full-time for an eligible employer during the suspension period.

This means that even if you are not paying your student loans, those months of nonpayments will still count toward earning Public Service Loan Forgiveness.

If Congress or the President has not taken action on February 1st to extend the relief, student borrowers can expect the repayment requirements to resume.

What Student Loan Borrowers Can Do

Borrowers should ensure that their student loan servicer has their current contact information. You will also want to notify your servicer if your banking information has changed, especially if you were enrolled in automatic payments.

Setting aside some money when payments resume can make the transition less painful. However, making payments can be difficult for those who are still unemployed or dealing with financial hardships. If you cannot afford to start paying in October, you still have other options.

  • Send a request for unemployment deferment or economic hardship. You cannot accrue interest under them, making them ideal ways to postpone your payments.
  • If you do not qualify for those two, you can use forbearance to keep suspending your bills. However, the interest will accumulate and the balance will be larger when you resume payment.
  • You can also enroll in an income-driven repayment plan to make payments more affordable. These programs cap borrowers’ monthly bills at a percentage of their discretionary income and forgive their remaining debt after 20 or 25 years.
  • To decide on the right payment plan, review your available options and find one that best fits your current situation.

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.

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