PSLF Loan Forgiveness
Updated – June 25th 2019
Persons that are employed by any division of the federal government or employed with a non-profit organization may be able to get a student forgiveness loan program otherwise know as PSLF Loan Forgiveness.
Qualified borrowers of the Public Service Loan Forgiveness or (PSLF) Program will have the remaining balance of their Direct Loans forgiven after having made 120 qualifying monthly payments while under a qualified repayment plan and working full time for a qualified employer.
How to qualify for student loan forgiveness
When qualifying for public service loan forgiveness the qualification is based on who your employer is rather than your job description, job task or job title.
Here is a small list of the core types of qualifying organizations for public service loan forgiveness:
- Non-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code
- Any Government organization of any level (federal, state or local)
- Other types of non-profit organizations that provide certain types of qualifying public services
- Full time service in with the Peace Corps or AmeriCorps
Now take note of the types of employers that are not qualified but are commonly incorrectly thought to be qualified types of employment.
- For-Profit Organizations
- Political Organizations
- Labor Unions
- Non-profit organizations that are not tax-exempt under Section 501(c)(3) of the Internal Revenue Code and that do not provide a qualifying service
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Qualifying Loan Types for Public Service Loan Forgiveness (PSLF Forgiveness)
Any student loan received under the William D. Ford Act and Direct Loan Program is a qualifying loan for public servant loan forgiveness.
If you have loans issued to you under a different program such as Federal Family Education Loans or (FFEL) or under the Federal Perkins Loan Program, these loans are not qualified for PLSF loan forgiveness.
However, if you consolidate your Federal Family Education Loan (FFEL) or Federal Perkins Loan into a Direct Consolidation Loan they will become available and will qualify for Public Service Loan Forgiveness.
What is considered as a qualified monthly payment?
For your payment to be recognized as a qualified payment for the public service loan forgiveness program you payment must be made after October 1, 2007.
Your monthly payment must be under a qualifying repayment plan, generally qualified repayment plans for PSLF loan forgiveness is within the income driven repayment section.
Your monthly payment must be on less than the required full minimum payment shown on your billing invoice.
Monthly payment must not be delinquent, this means you must make your monthly payment no later than fifteen days after the payment due date.
Payments made during these periods will not be considered as a qualifying payment for PSLF loan forgiveness.
- Loans in default status
- Loans that being pay by way of involuntary wage garnishment
- Payments made while In-School Status
- Payments made during the Grace Period
- While in a Deferment of student loan payments
- While in a Forbearance of student loan payments
Your 120 qualifying monthly payments are not required to be consecutive.
Student Loan Forgiveness – Teachers
There are two different types of student loan forgiveness programs for teachers:
Teacher Loan Forgiveness
Teacher Cancellation Forgiveness
What are the basic qualifications?
How to qualify for student loan forgiveness
A qualified borrower would need to teach full-time for at least five years or more consecutively. Borrower must actively teach in specific elementary, secondary and educational services agencies that serve in low income communities and meet additional qualifications.
Which loans qualify?
The qualified loan types for teacher loan forgiveness is
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Federal Subsidized Stafford Loans
- Federal Unsubsidized Stafford Loans
- Direct Consolidation Loans
Parent PLUS loans do not qualify unless they are consolidated into a new Direct Loan.
Teacher loan forgiveness requirements
Must not be in default on your student loans
Must not have an outstanding balance on or before Oct 1, 1998
Loans made before the end of your five years of teaching
Must be employed for the full five years on full time employment. And must be in consecutive years. At least one of those years must be after the year of 1997-1998
School district must qualify for Title I Funding
General Student Loan Forgiveness
This student forgiveness loan program is for borrowers that consolidate their student loans in a federal student loan consolidation program, but are not qualified through Public Service Loan Forgiveness or does not operate out of the profession of teaching.
Borrowers that enter into an income driven repayment plan will receive general student loan forgiveness after 300 months of making monthly payments. With certain income driven plans a borrower can qualify for student loan forgiveness after 240 months.
Also, borrowers must have federal student loans to qualify for general student loan forgiveness.
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How to apply for student loan forgiveness
Also, How do I get Started with the Student Loan Forgiveness Program?
If you are interest in fafsa loan forgiveness programs, the best thing to do is to consult with a student loan professional,
Professional assistance is a good option for learning what direction would best for you in your pursue of how to qualify for student loan forgiveness programs.
All of these student loan forgiveness programs have standards and specific requirements. Find out all you need to know so you do not waste your time reaching for something you may not have the requirement met for.
Still, if you believe there is any chance you are meeting all the requirements and fall into the laws and regulations to obtain student loan forgiveness then definitely go for it.
Furthermore, freedom from paying on your student loans could open the door for much more access to other goal financial goals and desires.
It is possible to get a federal student loan forgiveness program, or as some refer to as a PSLF loan forgiveness. Sometimes all you just have to do is reach for it.