You may already be eligible for student debt forgiveness if you hold a full-time position with a non-profit organization or a U.S. federal, state, local, or tribal government. To qualify, you must complete 120 payments under a qualified repayment plan, which need not be consecutive.
Since it takes at least 10 years to obtain, this option is not suitable for young graduates. Furthermore, you must either have a federal direct loan or combine all of your federal loans into one.
Regrettably, controversy has surrounded this show in droves. When the first borrowers became eligible for forgiveness under the government’s PSLF program in 2017, almost all of their applications were turned down, frequently on technical grounds. In a few instances, borrowers discovered that their loan servicers had lied to them about their program eligibility.
Due in part to the COVID-19 pandemic, the Education Department announced temporary modifications to the PSLF program on October 6, 2021. These modifications will allow borrowers to receive credit for past payments regardless of the loan program or payment plan, as well as regardless of whether payments were made on time or in full. For these benefits, borrowers must complete a PSLF form by October 31, 2022.
With only two essential requirements remaining:
Full-time employment or qualified employment at the time the preceding payments were made—many of the previous requirements for PSLF are waived as part of the change.
Every loan must be a federal direct loan for students (or consolidated into a direct loan program by Oct. 31, 2022).
Deferments and forbearances will be able to be included in active-duty service members’ PSLF thanks to the waiver. The government will now examine rejected PSLF applications for any inaccuracies and provide borrowers the option of having their PSLF determination reconsidered. This is the last significant change included in this update.
How To Apply
First, by October 31, 2022, consolidate any FFEL Program loans and/or Perkins Loans you may have into a straight consolidation loan. If you consolidated and completed your PSLF form after that period, you are not eligible to get time in repayment credit.
There are only four steps involved in applying for PSLF, all of which call for using the online PSLF Help Tool:
- To find out if you work for a qualifying employer, use the PSLF Help Tool.
- Have the person authorized to do so by your employer certify your employment for each year.
- After completing all program requirements, submit an application for forgiveness.
- After you have signed it, turn in your PSLF form to the PSLF servicer.
Send the completed form and your employer’s certification to MOHELA in the U.S. as the last step. The federal loan servicer for the PSLF Program is the Department of Education. If MOHELA already manages your loan, you can submit your PSLF form through their website. As an alternative, you can submit your PSLF form to the following address or fax it to 866-222-7060:
- U.S. Department of Education
- MOHELA
- 633 Spirit Drive
- Chesterfield, MO 63005-1243
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Source: Nyscinfo