PSLF processing times vary based on whether you've previously submitted employment documentation and other factors. But you can generally expect to wait one to three months for your loan forgiveness application to be fully processed.
For those on an income-driven repayment (IDR) plan, such as Income-Based Repayment (IBR), Pay As You Earn (PAYE), or Revised Pay As You Earn (REPAYE), loan forgiveness can occur after 20 or 25 years of qualifying payments, depending on the specific plan.
PSLF counts will continue to be adjusted each month until the IDR counts for all federally held FFEL Program and Direct Loans are adjusted in 2024. Your student loan servicer(s) will notify you directly after your forgiveness is processed.
After you submit your Student Loan Debt Relief Application, you will receive an email confirmation. The federal government will review your application and determine whether you are eligible for relief. They will contact you with instructions if they need more information.
Any borrower with ED-held loans that have accumulated time in repayment of at least 20 or 25 years will see automatic forgiveness, even if the loans are not currently on an IDR plan. Borrowers with FFELP loans held by commercial lenders or Perkins loans not held by ED can benefit if they consolidate into Direct Loans.
What will happen if my Public Service Loan Forgiveness (PSLF) application is approved? If you are approved for Public Service Loan Forgiveness, you'll be notified that the entire remaining balance of your eligible Direct Loans, including all outstanding interest and principal, will be forgiven.
If your federal student loans are forgiven, you could get a refund, and you might see your credit score dip.
You don't get reported when you're in forbearance. During the on-ramp period (through Sept. 30, 2024), we automatically put your loan in a forbearance for the payments you missed. Here's what this means: Your account was no longer considered delinquent and was made current.
Loans serviced by MOHELA? If you faxed or mailed your PSLF form to MOHELA it may take up to 14 days for your mohela.com account to note that the form was received. Please allow at least 90 business days for your form to be processed.
Why did my college send me a check? A refund check is money that is directly deposited to you by your college. It is the excess money left over from your financial aid award after your tuition and additional fees have been paid. Your college may send you a check or the money may be deposited into your checking account.
Student loans disappear from credit reports 7.5 years from the date they are paid in full, charged-off, or entered default. However, education debt can reappear if you dig out of default with consolidation or loan rehabilitation. Student loans can have an outsized impact on your credit score.
Federal Student Aid began accepting and reviewing applications from borrowers seeking loan forgiveness under the Public Service Loan Forgiveness (PSLF) Program in the fall of 2017.
Processing times will vary depending on factors such as whether you previously submitted documentation of employment for review or submitted documentation only at the time you applied for loan forgiveness, the number of your employers, any gaps in your employment or payment history, and any required follow-up.
What will happen if my Public Service Loan Forgiveness (PSLF) application is denied? If we determine that you're not eligible for loan forgiveness at this time, you'll be notified and will be provided with the reason(s) we determined you were ineligible.
Once we've received all of the documentation needed to determine whether you qualify for loan forgiveness, you'll be notified. A final review of your account will be done to process forgiveness, which will take at least 90 business days.
You may notice your former servicer has cleared your loan account. For example, your loan balance may come up as “paid in full” on your former servicer's website or on your credit report. This does not mean you've received loan forgiveness. This is part of the loan transfer process.
First, the U.S. Department of Education (Department) approved 6,100 borrowers for $465 million through Public Service Loan Forgiveness (PSLF). Second, the Department approved nearly 85,000 borrowers for $1.26 billion in relief based upon borrower defense findings.
Public Service Loan Forgiveness (PSLF)
The PSLF Program forgives the remaining balance on your Direct Loan after you've made the equivalent of 120 qualifying monthly payments while working full time for a qualifying employer.
After at least 20 years of student loan payments under an income-driven repayment plan — IDR forgiveness and 20-year student loan forgiveness. After 25 years if you borrowed loans for graduate school — 25-year federal loan forgiveness.
Let's say you have $200,000 in student loans at 6% interest on a 10-year repayment term. Your monthly payments would be $2,220. If you can manage an additional $200 a month, you could save a total of $7,796 while trimming a year off your repayment plan.
Paying off such a large balance can be difficult and time consuming. For example, if you had $300,000 in federal student loans and paid them off on the standard 10-year repayment plan with a 6.22% interest rate, you'd end up with a monthly payment of $3,364 and a total repayment cost of $403,663.
Meanwhile, 1 million people had a federal student loan balance of more than $200,000, up from 600,000 individuals.