Learn how to use the Public Service Loan Forgiveness Program to take advantage of forgiveness for student loans.
Why Public Service Loan Forgiveness
Those who work for a public service organization may qualify for Public Service Loan Forgiveness, but there are a few things to keep in mind. The program is not available to people who already have existing debt from a previous qualifying loan. It’s also important to remember that in order for the Public Service Loan Forgiveness program to work, you need to be employed for at least 10 years with your employer and make 120 monthly payments on their loans.
Public Service Loan Forgiveness is a forgiveness program that helps students pursue careers in public service and repay their student loans. It was created by the federal government to encourage more people to enter the field of public service. Students under the age of 60 who have made 120 qualifying year payments on their loans in 10 consecutive years are eligible for forgiveness, which can reduce or even eliminate a portion of their remaining loan balance.
How to Apply
Loans for Public Service are widely available through the Direct Loan Program. To qualify, you must have made 120 on-time qualifying monthly payments on a direct loan during your first 10 years of service. The application process is relatively straightforward, but you should be aware that there are three steps to the process:
To apply for PSLF, you’ll need to submit an application form to your lender. Some lenders may also require you to complete a program called the Employment Certification Request Form. The lender will then issue a certification letter that includes your loan amount and interest rate. You’ll submit this letter to StudentLoans.gov along with the required documentation and personal statement when you apply for forgiveness.
Common Mistakes with PSLF
A common mistake with Public Service Loan Forgiveness is not applying correctly. It’s important to file the correct application with your employer and school. Your lender may ask for information that you don’t have, so it’s best to go back in time and gather documents that might help you.
There are some common mistakes that borrowers make when trying to apply for PSLF. These include not applying in time, not being eligible (including due to lack of payment history), and incorrectly filling out the forms. If this happens to you, take a minute to call your loan servicer or contact your lender directly and make sure you’re doing everything correctly.
What Happens After the Application is Received?
The application for public service loan forgiveness is submitted to the United States Department of Education. The department reviews the application before authorizing a discharge from an eligible loan. Next, it sends a letter to the borrower who is now considered “enrolled in an income-driven repayment plan.” The borrower then completes Form 1098-E and submits it with his or her original promissory note and other supporting documentation to prove eligibility for forgiveness. Finally, borrowers must wait two years before they are eligible for full forgiveness of their remaining balance.
After completing the application, and it is accepted, collection agencies will cease making calls or sending letters. This means that your loan balance is forgiven if you make 12 consecutive months of on-time payments. If you don’t make a payment, the forgiveness can be delayed until your next payment is due.
Public Service Loan Forgiveness is a program that forgives the balance of your federal student loan debt if you work full-time in an eligible public service job for ten years. The process of applying for Public Service Loan Forgiveness is not complicated, but it does require a great deal of paperwork and time investment. If you are interested in applying for PSLF, you first need to find out which types of jobs qualify for PSLF.
This blog is intended to provide a guide through the process of applying for Public Service Loan Forgiveness.