Public Service Loan Forgiveness
What is public service loan forgiveness?
/Public Service Loan Forgiveness (PSLF) is a student loan discharge program that is designed to encourage fresh graduates and young professionals join and continue serving public service institutions. Under this program, individuals who are a part of public service and who have made 120 income-based loan repayments can get a waiver on outstanding student loan debt.Teaching is a profession that demands a great deal of responsibility and skills, but a career in this field is filled with numerous personal and professional growth opportunities. In addition to this, the US Government offers special rewards to individuals who serve as a teacher at a low-income school in the form of Teacher Loan Forgiveness Program (TLFP).
Teacher Loan Forgiveness Program is designed to encourage young graduates to pursue a career in this rewarding field. The program offers partial loan discharge to individuals who are employed at a low-income school for five consecutive years.
How does the discharge process work?
Under the Public Service Loan Forgiveness or PSLF program, individuals serving a public organization can get loan forgiveness after making 120 qualifying income-based monthly payments. For PSLF, the amount of monthly payments is determined on the basis of applicant’s income and family size.
What are the eligibility requirements for a PSLF?
While the requirements for PSLF may sound simple, it is important to determine whether or not you are eligible using the following list.
Type of Loan
- Direct consolidated loan
- All Direct loans, subsidized and unsubsidized
- Direct PLUS loans
- All Direst Stafford loans, subsidized and subsidized
Other types of federal loans and loans offered by private lenders are not eligible for PSLF. However, federal loans that are consolidated into a direct loan using the Direct Loan Consolidation program are considered eligible for PSLF.
Nature of Employment
Full-time employees of local, federal, and state organizations and of those non-profit organizations that have been declared as tax-exempt by Internal Revenue Code (IRC) can apply for PSLF. In order to be considered a full-time employee, an individual must for a minimum of 30 hours per week at a public service organization.
Outstanding debt is discharged after 120 monthly payments. Periods of deferment and forbearance do not contribute towards loan discharge.
What is the application process?
Payments made before October 1, 2007 are not considered under PSLF program. Also, in order to qualify for loan discharged under PSLF, the applicant must have made 120 monthly payments. Therefore, no individual will be eligible for PSLF until 2017.
The US Department of Education has announced that applications will be made available in 2017 and has released an employment certificate, which is to be submitted every year by applicants to make sure that the eligibility data is appropriately documented.
How can we help?
Simple Repayment helps students pay off their loan debt. We are a team of expert enrollment advisors who can help you understand the benefits and eligibility requirements of different types of loan forgiveness programs. In addition to this, we can guide you throughout the application process, from determining your eligibility for the program all the way through document preparation and processing.