Find out about the program and how to apply
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The temporary changes to the Public Service Loan Forgiveness (PSLF) expired on October 31, 2022.
but borrowers who work in the public sector can still apply for a waiver.
If you have worked for 10 years or more (even if not consecutively) in a public service (federal, state, local, tribal or non-profit organization), you may be eligiblecancel all your student debt.Now, for a limited time, it's easier than ever to receive that forgiveness or receive forgiveness credit if you haven't served 10 years.However, you must apply by October 31, 2022.
“Dedicated officials are the lifeblood of democracy. They do the hard work essential to our country's success—they protect us, educate our children, keep our streets clean, our lights on, and more.”
President Joe Biden
Use our simple tool to see if you're eligible
Understand the pros and cons of consolidation, including the impact on eligibility for one-time debt relief
Meet other public servants
Meet Elena, the psychiatrist
Elena is a psychiatrist working at a state hospital in upstate New York, where she has worked for the past four years. Before that, she worked for a non-profit hospital in New York City for seven years. She has Federal Direct Loans from her undergraduate and med school backgrounds and has made payments on time throughout her career. Should Elena apply for PSLF now?
Yes! Why?- Under the temporary changes, Elena is entitled to receive credit for past payments, even if the payments were not made on time or for less than the amount due. If Elena made 120 monthly payments, then the temporary changes would forgive her.
Meet Vishal the teacher
Vishal is an elementary school teacher in Lexington, Kentucky, where he has been a teacher for the past three years. Previously, he worked for three years at a non-governmental organization (NGO) specializing in outreach and education for local farmers. Vishal received a federal loan from Perkins for his undergraduate education and has consistently made punctual monthly payments since graduating. Should Vishal apply for PSLF now?
Yes! Why?- As part of the temporary changes, Vishal will be able to consolidate its Perkins loans into a direct loan and credit 6 years' worth of monthly payments towards forgiveness. However, Vishal has until October 31 to apply for consolidation and apply for the PSLF program. Once consolidated, assuming he continues to work full-time with a public or private non-profit employer, he has four more years of monthly payments before receiving forgiveness.
Meet Carlos, the Grants Manager
After Carlos graduated from college, he worked full-time at a bank in his hometown of Mobile, Alabama. He worked there for five years while making payments on his Federal Direct Loans. Carlos left the bank and worked full-time for the City of Mobile as Grants Manager, where he has worked for the past ten years. He's not sure how many payments he's made over his time, but he knows he hasn't made all the payments, and when he has, not always the full amount. Should Carlos apply for PSLF now?
Yes! Why?- Even if Carlos hasn't made 120 payments, he should still apply because he worked for a qualified employer and the temporary changes allow many of his previous payments to count toward forgiveness, even if they weren't the full amount or on time. Carlos may not be far from forgiveness, but he must apply by October 31 to claim the benefits.
Meet Daniel the Veteran
Daniel graduated from college in 2012 and served in the US Army. During his service he paid off his student loan as part of the Federal Family Education Loan (FFEL) on time. Daniel decided to leave the Army in 2020 and began working for a privately held manufacturing company in Billings, Montana. He still owes money on his student loans and wonders if he might be eligible for PSLF. Should Daniel apply for PSLF now?
Yes! Why? – Daniel may be eligible for PSLF credit due to his 8 years of service in the US Army. To take full advantage of the temporary changes, he must apply to consolidate his loans into the direct loan program and apply for PSLF by October 31. However, given that the private company Daniel currently works for does not meet the requirements of a qualified employer, he cannot be exempted just yet. However, should Daniel choose to return to the public sector, he would only have two years of payments left to receive full PSLF benefits.
Meet Alicia the scientist
After attending the University of Chicago, Alicia moved abroad to work for a US-based non-governmental organization (NGO) for six years. During her time abroad, she repaid her direct loans every month. She returned to the United States for her master's degree, not working during that time, but still paying off her student loan. After completing her master's degree, she accepted a position as a research scientist at the State of Colorado, where she has worked for the past four years while continuing to pay off her student loans. Should Alicia apply for PSLF now?
Yes! Why?- Alicia is eligible for forgiveness today for having served six years with a US-based NGO and four years with the State of Colorado. Even if she didn't have the right payment schedule or didn't make minimum payments on time, under the temporary changes she would be eligible to receive the full benefits of PSLF after making 120 payments for both qualifying employers. Alicia should make sure to apply by October 31, 2022.
help is here
- Download theThe Consumer Financial Protection Bureau's Individual Guide for Teachers.
- Download theThe Consumer Financial Protection Bureau's Individual Guide to First Responders.
- Download theTailored Consumer Financial Protection Bureau's State/Local/Tribal Guide.
- An easy to usePSLF Explanatory DocumentOutlines of changes and permission
questions and answers
Any federal, state, local, or tribal government agency in the United States is considered a government employer for the PSLF program. This includes employers such as the US military, public elementary and high schools, public colleges and universities, public child and family services, and special government districts (including entities such as public transportation, water services, bridge districts, or housing authorities).
A government contractor is not considered a government employer.
You can visit ourPublic Service Loan Forgiveness (PSLF) help tool.to help you determine if an employer qualifies as a qualified employer under the PSLF program.
The specific job you do is irrelevant as long as you are employed by a qualified employer. For example, if you are a full-time employee of a public school system, your employment would qualify for PSLF regardless of your position (teacher, administrator, support staff, etc.).
Yes. However, you must have onePSLF formshowing that you were employed full-time by a qualified employer at the time you made each of the required 120 payments.
AmeriCorps or Peace Corps volunteer service counts. However, no other full-time volunteer service is eligible. You must be a full-time employee hired and paid by a qualified employer.
Yes, under the temporary changes, you are eligible for PSLF but must apply before October 31, 2022.
Learn about some PSLF rules that are being waived for a limited time
No. Private education loans are not eligible for PSLF and cannot be consolidated into a direct consolidation loan.
Defaulted direct loans are not eligible for PSLF. However, a defaulted loan may be eligible for PSLF if you fix the default.Learn how to fix the outage through rehabilitation or consolidation.
Yes. Like other direct loans, Direct PLUS loans are eligible for PSLF. Direct PLUS loans are given to college graduates and working professionals. Direct PLUS loans to parents may need to be consolidated.
Do you have anymore questions?
Please visit the Ministry of EducationFAQ page of the Federal Office for Student Support.
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resources
FAQs
Has anyone gotten public service loan forgiveness? ›
U.S. Department of Education Announces $42 Billion in Approved Public Service Loan Forgiveness for More Than 615,000 Borrowers Since October 2021. U.S. Department of Education.
Which president started public service loan forgiveness? ›The program, signed into law by President George W. Bush, allows for loan forgiveness after 10 years of payments and meeting other criteria for individuals employed in public service. The official PSLF start date is October 1, 2007.
Who is excluded from bidens loan forgiveness? ›President Biden's student loan forgiveness plan was abruptly updated on Thursday to exclude borrowers with privately held federal student loans, according to Education Department guidance.
How will i know if i get public service loan forgiveness? ›Log in to StudentAid.gov to track your PSLF progress. For updates on your application status, visit MOHELA's website or contact them at 1-855-265-4038. Be aware that MOHELA is experiencing historic submission volume that may delay response time. We appreciate your patience.
How do I know if I qualify for public loan forgiveness? ›- work full time for a government agency or for certain types of nonprofit organizations,
- have Direct Loans (or have consolidated other federal student loans to qualify),
- repay your loans on an income-driven repayment plan, and.
- make 120 qualifying payments.
The Biggest PSLF Errors That Cause Loan Forgiveness Denial
Failing to submit your Employment Certification Form (ECF) each year. Making mistakes on your ECF. Not consolidating your ineligible loans. Not being in an income-driven repayment (IDR) plan.
History. President George H. W. Bush authorized a pilot version of the Direct Loan program, by signing into law the 1992 Reauthorization of the Higher Education Act of 1965.
Was PSLF passed by Congress? ›In 2007, Congress passed a law creating the Public Service Loan Forgiveness (PSLF) program, promising debt forgiveness to student loan borrowers who made their student loan payments and did public service work for ten years.
How do I know if I qualify for Biden's loan forgiveness? ›Eligibility for Biden's Student Loan Cancellation Plan
You must earn less than $125,000 a year for individuals, or $250,000 for married couples and/or head of households.
Loans from these federal student loan programs don't qualify for PSLF: the Federal Family Education Loan (FFEL) Program and the Federal Perkins Loan (Perkins Loan) Program. However, they may become eligible if you consolidate them into a Direct Consolidation Loan.
What loans are no longer eligible for forgiveness? ›
What kinds of student loans aren't covered by Biden's student debt forgiveness plan? Broadly speaking, private student loans aren't included in the program -- including federal loans owned by private banks, unless they've already been consolidated through the government's direct lending program.
What is the timeline for public service loan forgiveness? ›PSLF discharges any remaining federal student loan balance after borrowers make 10 years' worth of payments.
How many people qualify for PSLF? ›31, 2022, the U.S. Department of Education (ED) implemented a change to PSLF program rules for a limited time as a result of the COVID-19 national emergency. Through early February 2023, approximately 453,000 borrowers have qualified for forgiveness under the limited PSLF waiver.
How far back does public service loan forgiveness go? ›The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 (10 years) qualifying monthly payments under a qualifying repayment plan, while working full-time for a qualifying employer.
Who are considered public service workers? ›Jobs with federal, state, local or tribal government organizations, public child or family service agencies, 501(c)(3) non-profit organizations, or tribal colleges or universities should be considered “public service jobs.” Government employers include the military and public schools and colleges.
Do private loans count for public service loan forgiveness? ›Are private education loans eligible for Public Service Loan Forgiveness (PSLF)? No. Private education loans aren't eligible for PSLF and can't be consolidated into a Direct Consolidation Loan.
Is public loan forgiveness ending? ›The time-limited changes to the Public Service Loan Forgiveness (PSLF) Program rules, referred to as the limited PSLF wavier, allowed borrowers to receive credit for past periods of repayment that would otherwise not qualify for PSLF. This opportunity was announced on Oct. 6, 2021, and ended on Oct. 31, 2022.
What is the downside to PSLF? ›Potentially the most significant drawback of student loan forgiveness is the taxes. With a few exceptions, including PSLF, the IRS considers the amount of your forgiven balance to be taxable income. Depending on how much is forgiven, that could amount to tens of thousands of dollars you owe in taxes.
Can your income be too high for PSLF? ›There are no income limits for the PSLF program. However, if your income is high relative to the balance of your student loans, you might not qualify for an income-driven repayment (IDR) plan.
What is the success rate of PSLF? ›Here's how many borrowers have seen their debts discharged through PSLF: 8.05% of all PSLF and TEPSLF applications have been approved, according to October 2022 data from the Department of Education (233,320 approved for discharge among 2,897,797 total applications).
What makes student loans so difficult to pay off? ›
Certain lenders may capitalize your interest or charge interest on top of interest, which results in higher charges. Capitalized interest can make it challenging to make a dent in your total student loan balance. If you're wondering, why do student loans take so long to pay off? Capitalized interest may be the culprit.
What did President Biden do with the student loan debt? ›President Biden announced his plan to forgive student loan debt for certain borrowers on August 22, 2022. Under the proposal, borrowers earning under $125,000 can apply for up to $10,000 in federal student loan relief. Pell Grant recipients would also be eligible to receive up to $20,000 in loan forgiveness.
When was the last time student loans were forgiven? ›The Public Service Loan Forgiveness (PSLF) program was passed in 2007 to forgive student loan debt to individuals in qualifying jobs who work 10 years in public service and make 120 on-time loan payments.
Did Biden extend PSLF waiver? ›Instead of extending the waiver, the Biden administration is making some permanent changes to the program that will go into effect in July 2023.
Will Biden forgive student loans? ›Biden's one-time student debt forgiveness program is estimated to cost $400 billion over time. Individual borrowers who made less than $125,000 in either 2020 or 2021 and married couples or heads of households who made less than $250,000 a year could see up to $10,000 of their federal student loan debt forgiven.
Who signed public service loan forgiveness? ›Signed into law by then-President George W. Bush in 2007, the Public Service Loan Forgiveness program allows certain nonprofit and government employees to have their federal student loans canceled after 10 years, or 120 payments.
Will Biden loan forgiveness be automatically applied? ›If you continued paying your federal student loans during the forbearance period and now owe less than $10,000, you will not receive an automatic refund to bring your forgiveness amount up to $10,000. Only existing student loan debt will be forgiven, up to the $10,000 or $20,000 cap per borrower.
Will my student loans be automatically forgiven? ›Will my student loans be forgiven? All federally owned student loans are eligible for forgiveness. If you have Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, Direct Consolidation Loans or FFEL Loans owned by the U.S. Department of Education, they're all included in the forgiveness plan.
Did the Supreme Court rule on student loan forgiveness? ›WASHINGTON (AP) — The Supreme Court on Thursday allowed a roughly $6 billion legal settlement to go forward that will cancel student loans for hundreds of thousands of borrowers who say they were misled by their schools.
What 6 states are blocking loan forgiveness? ›The six conservative states – Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina – argued the president lacks the authority to forgive student loan debt en masse. They also contested they would be financially harmed should the federal government cancel billions in student loan debt.
Who doesn't have to pay back student loans? ›
Scholarships, grants, and work study are the three main financial aid types that don't need to be paid back.
Who will get $20,000 loan forgiveness? ›Individuals who earn less than $125,000 and couples whose income is under $250,000 could be able to apply for up to $10,000 in federal student loan forgiveness. It doubles to $20,000 for Pell grant recipients.
How easy is it to get public service loan forgiveness? ›Because you have to make 120 qualifying monthly payments, it will take at least 10 years before you can qualify for PSLF. Important: You must be working for a qualifying employer at the time you submit the form for forgiveness and at the time the remaining balance on your loan is forgiven.
What percentage of people get public service loan forgiveness? ›8.05% of all PSLF and TEPSLF applications have been approved, according to October 2022 data from the Department of Education (233,320 approved for discharge among 2,897,797 total applications).
Will student loan forgiveness actually happen? ›Prepare to wait for a ruling
Until then, the forgiveness plan — and everyone with outstanding student loans — remain in limbo. It's also worth noting that the Supreme Court's heavy conservative majority isn't in the Biden administration's favor. For now, the student loan payment moratorium remains firmly in place.
Jobs with federal, state, local or tribal government organizations, public child or family service agencies, 501(c)(3) non-profit organizations, or tribal colleges or universities should be considered “public service jobs.” Government employers include the military and public schools and colleges.
Is there a downside to applying for PSLF? ›Potentially the most significant drawback of student loan forgiveness is the taxes. With a few exceptions, including PSLF, the IRS considers the amount of your forgiven balance to be taxable income. Depending on how much is forgiven, that could amount to tens of thousands of dollars you owe in taxes.
Will public service loan forgiveness hurt my credit? ›President Biden's loan forgiveness plan is still under court review, but if it comes to fruition, you may wonder how it will affect your credit. Loan forgiveness won't remove your accounts from your credit report. Instead, the accounts will show up as paid in full and your debt-to-income (DTI) ratio will improve.
What is the average amount forgiven in PSLF? ›1.6 million borrowers eligible for public service loan forgiveness (PSLF) have not received forgiveness. Thousands of public service professionals who were formerly ineligible to receive forgiveness may be eligible through temporarily expanded PSLF. The average amount forgiven through PSLF is about $64,000.
What companies qualify for PSLF? ›Only U.S. federal, state, local, and tribal government organizations, agencies, or entities are qualifying employers for purposes of PSLF.
What student loans are not eligible for forgiveness? ›
What student loans are not eligible for forgiveness? Private student loans, by definition, are private and are not eligible to be forgiven. These are loans the borrower owes to student loan providers and not the federal government. Mr.
What student loans are eligible for forgiveness? ›This means that subsidized loans, unsubsidized loans, parent PLUS loans, and graduate PLUS loans held by ED are eligible. Consolidation loans are also eligible for relief, as long as all of the underlying loans that were consolidated were ED-held loans and were disbursed on or before June 30, 2022.
Has the Supreme Court made a decision on student loan forgiveness? ›WASHINGTON (AP) — The Supreme Court on Thursday allowed a roughly $6 billion legal settlement to go forward that will cancel student loans for hundreds of thousands of borrowers who say they were misled by their schools.
Is there a maximum salary for PSLF? ›There is no maximum income cap in the IDR or PSLF program. If a borrower begins with an income low enough to qualify for an IDR plan but later earns a higher salary, their monthly payments under the IDR plan could increase.
Are 98% of public service loan forgiveness applications rejected? ›The Department of Education denied 98% of PSLF applications between November 2020 and October 2021. Some borrowers discovered they weren't eligible for forgiveness after making years of payments working in what they thought were qualifying positions.