If you are a student eyeing a public service career, you might want to consider the Public Service Loan Forgiveness (PSLF) program as a way to offset the costs of obtaining a college degree for your career.
In short, this program offers forgiveness for public service employees who have student loans. However, there are a few requirements to meet before you can apply. And if you haven’t graduated yet or you’ve just started your career, you should definitely get on the path now to qualify for PSLF so you can max out your student loan forgiveness potential.
How to apply for Public Service Loan Forgiveness:
The PSLF program only offers forgiveness for individuals in public service. Where you work will determine whether you qualify for the program. Below are the types of eligible employers:
And you have to be employed full-time (at least 30 hours per week) to be deemed eligible. However, volunteers in the Peace Corps or AmeriCorps can also qualify.
You must enroll in an income-driven repayment plan.
An income-driven repayment plan saves you the most amount of money, as these plans cap monthly payments at 10%, 15%, or 20% of your discretionary income. It’s generally best to enroll in the plan with the lowest monthly payment so you can max out your forgiveness potential when it’s time to apply for PSLF.
Read more about the four different income-driven repayment plans and which plan might be best for you on our blog, How To Qualify For Income-Based Repayment Plans. Note, you will need to recertify your income every year to stay enrolled in an income-driven repayment plan.
Eligibility for PSLF requires 120 qualifying monthly payments. Qualifying means that your monthly payments are:
The Employment Certification Form must be completed and submitted once a year or whenever you change public service jobs. Skipping this step will disqualify your payments even if you’ve completed them!
Make sure your employer certifies the document. Send it over to your supervisor to sign and then submit it to Fedloan.
Your loans won’t automatically be forgiven once you’ve completed your 120th payment. You have to apply for forgiveness as soon as you’ve made your last monthly payment. You must complete, sign, and submit the PSLF application, and don’t forget, your employer must certify your employment on the PSLF application too.
Qualifying for the Public Service Loan Forgiveness program requires long-term investment and commitment. However, once you complete your 120 qualifying payments, it is pretty straightforward from there to get your student debt forgiven. Make sure to follow these instructions and if you’re ever confused by which repayment plan is best for you, when to recertify your income, how to fill out the Employment Certification Form, we’re here for you! We’re experts and have years of experience helping other public service employees get their loans forgiven too!
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.
If you’re one of the many private student loan borrowers, you might have this question in mind: do private student loans have public service forgiveness, otherwise known as PSLF?The hard truth is that there is no Public Service Loan Forgiveness for private student loans. However, it pays to know how PSLF works and how you can qualify for the program. Check out the article below to learn some alternatives to private student loan forgiveness too.
One of the biggest things that discourage aspiring graduates from realizing their dreams is student loan debt. In some cases, borrowers spend most of their lives paying their debt off. It’s not that they don’t want to pay or do not have the means to do so, what makes it extra difficult are the outrageous interest rates that come with student loans. In this article, we'll dive into ways to negate those high interest rates, specifically by pursuing public student loan forgiveness or by refinancing student loans.