Starting this fall, we will begin an extensive outreach campaign to make sure borrowers are better informed about this key benefit. This will include emailing borrowers who have hit PSLF-eligible payments during the pause but need to verify their employment to receive forgiveness. ED will also notify borrowers about any additional payments we are able to automatically count and the option for reconsideration of denied applications, as applicable. We will also work to ensure that all potentially eligible borrowers are aware of the improvements to PSLF and tools available to them.
We can and should make it easier for borrowers to apply for PSLF. In the coming year, FSA will make several improvements that will create a smoother application process.
ED will also explore other improvements, like allowing employers to sign employment certification forms on behalf of their employees and automating PSLF certification for state, local, and tribal government employees.
In addition to the executive actions outlined here, ED plans to continue transforming PSLF through the negotiated rulemaking process. What Borrowers Need to Know. ED will roll out these improvements in groups over the coming months.
For more information, please visit StudentAid. By creating an account, we can communicate with you directly in a personalized way about how this waiver and other matters might affect you. If necessary, Federal Student Aid may contact you to ask you to certify additional months of employment.
You should look out for an email from Federal Student Aid in the coming weeks to let you know how many additional payments we have preliminarily determined to be qualifying. If you know that you have qualifying employment that you have not yet certified with us, we recommend you certify that employment now by using the PSLF Help Tool at www. You will need to submit a PSLF form so we can review your loans under the simplified rules and determine whether your current or past employers qualify for PSLF.
Because we expect an influx of applicants due to this announcement, you may see some delays in having your application processed, but we will work as quickly as possible to assist you. You will need to submit your application by October 31, We will provide more information when this update is done. To find out more about loan consolidation visit StudentAid. Please note that this waiver does not affect qualifying employer rules. Your employer still needs to be a governmental organization, a c 3 organization, or a not-for-profit organization that provides a designated public service to get PSLF under normal rules and the Limited PSLF Waiver.
You can see what loans you have by logging into your account on StudentAid. In the coming weeks, servicers will receive updated information from FSA to help you navigate these changes. If you encounter challenges working with your loan servicer, you should contact the FSA Ombudsman by visiting StudentAid.
Toggle navigation U. Department of Education. Here's who was previously eligible. Read More. The program was created in and provides an incentive for workers to remain in lower-paying, public service jobs despite their student debt.
Teachers, social workers and first responders can be eligible as well as doctors and lawyers -- if they were employed full time by a nonprofit or the government while making payments. After borrowers make monthly payments, their remaining federal student debt is wiped away.
Here's why Black leaders say the student loan crisis is a civil rights issue. But prior to the recently announced changes, eligibility also hinged on having a Direct Loan and being enrolled in an income-driven repayment plan, which sets payments based on income and family size. Those with Federal Family Education Loans, which were made by private lenders but backed by the government, did not qualify. Borrowers say those qualifications were not always clearly communicated by the company servicing their loans, and many discovered they weren't eligible for debt relief only after making nearly payments.
Borrowers are allowed to consolidate a Federal Family Education Loan into a Direct Loan to become eligible for the program, but none of their previous payments would count toward the required -- until now.
Here's who gained eligibility. Due to the temporary waiver, it no longer matters what kind of federal student loan a borrower has or what payment plan he or she is enrolled in. All payments will be eligible for the Public Service Loan Forgiveness program if the borrower was working full time for a qualifying employer.
It will also count months that service members spent on active duty toward PSLF, even if loan repayment was on a temporary suspension through a deferment or forbearance. The department's review will also take a look at payments that were potentially miscounted by the company or organization servicing the loan. In some instances, borrowers missed out because their payments were off by as little as a penny or late by a few days.
Sometimes a payment was posted but the record showed that no bill was generated. The Department of Education says it will adjust the count for borrowers affected by this issue as well.
What to do now and how long it will take. Some borrowers won't have to do anything and the department will automatically review their payments. This applies to anyone who already has consolidated their loans into a Direct Loan and has had at least some qualifying employment certified. Be employed by the U. Qualifying payments are those that you make:.
But any payments made during the automatic emergency forbearance period, which extends from March 13, , through Jan. The StudentAid. In October , the Department of Education announced significant changes to the PSLF program to make it easier for eligible borrowers to get loan forgiveness. Neither would any payments made on a Direct Loan if you consolidated it into a Direct Consolidation Loan — the consolidation would restart the countdown to payments.
Under the new rules, through Oct. Another issue with the PSLF program stems from payments not counting toward the payment requirement because they were short by a few cents or late by just a couple of days. This presented challenges for members of the U. Starting next year, the department will begin automatically matching its data with information provided by other federal agencies to automatically give service members and other federal employees automatic credit for qualifying employment.
The Department of Education will review all denied PSLF applications and create a process to reconsider previously declined applications from borrowers who believe their application was denied in error. In fact, you can begin the process as soon as you have a full-time job with a qualifying employer.
Enroll in a qualifying repayment plan. To qualify for PSLF, you must be enrolled in an income-driven repayment plan. Start making qualifying payments. Make sure you pay the full amount due each month, no later than 15 days after your payment is due. Complete the employment certification for PSLF form. You need to complete the PSLF certification and application form , have it certified by your employer, and send it to the Department of Education once a year and whenever you change employers.
Submit your final application. You need to be working full-time for a qualifying employer when you submit the form and when your loan is forgiven. You still have to work full-time for a qualifying employer and have Direct Loans or Direct Consolidation Loans.
But more of your past payments may count. Consider whether you might be eligible for one of the following:. Closed school discharge — If your college, university, or vocational school closed while you were enrolled or soon after withdrawing, you may be able to have your federal loans discharged.
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