April 2, 2020

Top 3 Reasons Teachers Are Denied Loan Forgiveness

Forgiveness

Why is Teacher Loan Forgiveness Important?

Teachers can have the option of both Public Service Loan Forgiveness (PSLF) or Teacher Loan Forgiveness (TLF) programs, both being essential opportunities that many teachers rely on when pursuing a career in education. Often times, teacher salaries will not be substantial enough to cover both their living expenses as well as student loan payments, especially starting out. With the help of PSLF or TLF, teachers can pursue careers in education with more peace of mind. But unfortunately, many teachers are not approved for loan forgiveness. In fact, a staggering 99% of loan forgiveness applicants are denied due to various reasons that shouldn’t be as common as they are. Here’s the break down:

Teachers Are Denied Due To Misunderstanding and Lack of Information.

1. 15% are rejected for having ineligible loans

Older repayment plans such as Federal Family Education Loans (FFEL) do NOT qualify for the PSLF program. However, you can still consolidate these loans into a Direct Consolidation Loan in order to qualify for PSLF. For TLF, teachers can have Direct Subsidized and/or Unsubsidized Loans or FFELs. Perkins Loans are not eligible for either program. However, they can be canceled through Perkins Loan Cancellation, teachers can have up to 100% of their Perkins Loans canceled after five years of eligible teaching service.

2. 24% of applicants were rejected due to incorrectly filed forms

Reasons for these mistakes:
  1. Errors made filling out forms and/or applications such as: leaving items blank, inconsistencies, and correction errors (signifying with an initial to approve changes on the application)
  2. Not submitting the Employment Certification Form each year – this is a requirement for PSLF
  3. Not submitting re-certifying income each year to stay enrolled in an Income-Driven Repayment Plan – this is a requirement for PSLF

3. 55% of people didn’t match all the requirements to receive forgiveness

  1. Not being enrolled in an Income-Driven Repayment Plan – this is a requirement for PSLF
  2. Not having made the 120 on-time payments – this is a requirement for PSLF
  3. Not meeting the five complete and consecutive years at a Title 1 school - this is a requirement for TLF

There is a clear problem the student loan forgiveness processes are unintuitive. Teachers need an easier way to manage their loans, requirements, and qualifications for PSLF and/or TLF. With Chipper, we can help you keep track of your loans and the process of student loan forgiveness.

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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