How the Public Service Loan Forgiveness Program Works
Borrowers can qualify for the Public Service Loan Forgiveness (PSLF) program by working in public service and making qualifying payments for 10 years. This program can help alleviate education costs and the burden of student debt for professionals who choose to work in nonprofit or government organizations.
How to Qualify for Public Service Loan Forgiveness
Borrowers must meet several requirements to qualify for the Public Service Loan Forgiveness program. This includes the employer rule, full-time employment, loan type, qualified repayment plan, and required payments.
Qualification Issues
Navigating the Public Service Loan Forgiveness program may not always be straightforward. As a result, some borrowers may believe they are making progress toward obtaining Public Service Loan Forgiveness when their payments do not actually meet the requirements. Common issues can slow borrowers’ progress toward obtaining Public Service Loan Forgiveness.
Using the Public Service Loan Forgiveness Tool
The U.S. Department of Education’s Public Service Loan Forgiveness tool helps borrowers understand the forgiveness requirements. You must log in with your FSA ID to access the Public Service Loan Forgiveness tool. Its use is relatively straightforward and includes reviewing Public Service Loan Forgiveness requirements, eligibility information, and providing recommended actions to improve eligibility for Public Service Loan Forgiveness.
Applying for Public Service Loan Forgiveness
There is only one application form for Public Service Loan Forgiveness. This form acts as the Public Service Loan Forgiveness application and the employer certification form for Public Service Loan Forgiveness. You must submit this form for your employer certification and to determine if you are on track for forgiveness, unless you are an active-duty military member or an exempt government employee. You should complete this step when you begin your first qualifying job and recertify once a year thereafter or when you change employers.
Fill out the form and check for any mistakes. You will be asked to indicate whether you are verifying your payments or your employer, or if you are applying for forgiveness. Parts of the Public Service Loan Forgiveness application must be completed and certified by your employer. Submit this form to FedLoan, the student loan servicing provider that handles Public Service Loan Forgiveness, by uploading online, mailing, or faxing. The servicer will verify your eligibility and notify you of any adjustments you need to make to qualify for forgiveness. The servicer will also specify how many qualifying payments you have made and how many more payments you need to make.
Source: https://www.thebalancemoney.com/how-to-apply-public-service-loan-forgiveness-5119504
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